2019 (3) TMI 705 - AUTHORITY FOR ADVANCE RULING - WEST BENGAL

Classification of goods - ascertaining applicability of the Rate Notification - Parts of ink / ball point pen - Whether tips and ball, both being pen parts under HSN Chapter Head 9608, used in manufacturing process of ball point pens, are taxable at the rate of 12%; b) If the tips and balls used in the manufacturing of ball point pens are not taxable at the rate of 12% under HSN 9608, then at what rate shall they be taxable and under which HSN?

Held that:- Since, “tips and balls of pens” are definitively not considered as part of “Pen holders, pencil holders and similar holders” they are to be classified under 9608 99 90: Others, under HSN 9608 and are to be taxed accordingly.

In the Rate Notification ball point pens, classified under HSN 9608, are included under Sl No. 232 of Schedule II under the description: “pens other than fountain pens, stylograph pens”. The same Notification also mentions “fountain pens, stylograph pens” under Sl No. 447 of Schedule III. However, parts of pen, including “tips and balls of pens”, classifiable under HSN 9608 as discussed above, are not exempted or specifically included under entries of any other schedules. They are, therefore, to be included under Sl No. 453 of Schedule III and taxable @ 9% CGST and 9% SGST.