TMI Blog2019 (3) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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. - Case No. 01 of 2019 Order No. 44/WBAAR/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll 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. 1.2. Section 97(2) (a) (b) of the GST Act empower this Authority to pronounce a ruling on the classification of any goods or on the applicability of a notification issued under the GST Act. Classification refers to determination of the nature and character of the goods being supplied. The purpose of the exercise is to ascertain the applicability of any entry of the notifications issued under the GST Act, specifying the rate of tax or exemption from payment of tax [Rate of tax on supply of goods is specified und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balls and Nibs . It appears that the Applicant is using the words Tip and Nib interchangeably, and to clear the confusion the Authority then asked the Applicant to submit samples of the products on which the Ruling has been sought for. Samples were submitted during Final Hearing. 3. Submissions of the Revenue 3.1. The Ball Point Pens are classified under Sub-heading no. 960810 of GST Tariff, attracting CGST @6% and SGST @ 6%, while Refills for ball point pens, comprising the ball point and ink-reservoir are classified under Sub-heading no. 960860 of GST Tariff attracting CGST @ 9% and SGST @ 9%. Tips and balls are the parts of refill, and since there is no specific subheading allotted to these parts these may be classifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide ink to the ball through the socket, and a self-contained ink reservoir supplying ink to the ball. 4.4. So it is evident, that though often used interchangeably by the Applicant, the two words (nib and tip) refer to two different genres and styles of pen in which they are used, with distinctly different ways of channelling the ink. 4.5. As is clear from the discussion above, Nibs and Tips of pens are completely two different products with distinguishable anatomy catering to different kinds of ink and hence, use. While the split down the centre is the essential and salient feature of a Nib , the ball at the end of the refill is the essential and salient feature of a Tip . The two terms cannot be used synonymously and/or as s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iption are preceded by a --- (triple dash) or ---- (quadruple dash) are sub classifications of the immediately preceding single dash or double dash, as the case may be. 4.9. Chapter Heading 9608 includes Ball point pens; felt tipped and other porous tipped pens and markers; fountain pens; stylograph pens and other pens; duplicating stylos; propelling or sliding pencils; pen holders, pencil holders and similar holders; parts (including caps and clips) of the foregoing articles, other than those of heading 9609 . 4.10. Chapter Heading 9609 includes Pencils (other than pencils of heading 9608), crayons, pencil leads, pastels, drawing charcoals, writing or drawing chalks and tailors chalks and are clearly out of the purview of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 4.16. 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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