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2020 (8) TMI 776 - AAR - GSTClassification of goods - applicable rate of tax - Printing and supply of Security Excise Adhesive Labels - whether classifiable under HSN Code 4821 attracting GST @ 18% or under HSN Code 4911attracting 12%? - HELD THAT:- Hon’ble Supreme Court in the case of M/S. HOLOSTICK INDIA LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, NOIDA [2015 (4) TMI 357 - SUPREME COURT] dealt with an identical issue. In that case, the question was whether a coated metallised film (classified under Central Excise Tariff 39.20.36) undergoing embossing and applied with an adhesive coating resulting in a hologram would be classified under Heading 4901 or 3919. It was held by Apex Court that the primary use of the product is security and not the quality of being adhesive. The primary use of such tape is by virtue of its adhesiveness to bind and package containers in which goods are to be stored and transported. Obviously, in such an example, the printed monogram of such adhesive tape would be incidental to the primary use of the said goods - the adhesive tape. In the present case also, the primary use of the Security Excise labels is for security. Akin to Note No.2 to entry 49 in Central Excise Tariff, a similar Note No. 12 is existing in Chapter 48 of GST Tariff - Also, the sixth edition of volume III of Explanatory Notes of World Customs Organisation in relation to Chapter Heading 4911 also includes at item No. 10, “Self-adhesive printed stickers designed to be used, for example, for publicity, advertising or mere decoration, e.g., “comic stickers” and “window stickers”. Thus, the judgment of the Hon’ble Supreme Court in the case of M/S. HOLOSTICK INDIA LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, NOIDA [2015 (4) TMI 357 - SUPREME COURT] wholly applies to the instant case and therefore the product in question is classified under the Heading 4911 and rate of tax is 12% as per Sr. No. 132 of schedule Il of Notification No. 01/2017-CT (R) dated 28.06.2017.
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