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TMI Blog2019 (7) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... alagachia, Thakurpukur. Kolkata-700063 against the Ruling passed by the West Bengal Advance Ruling Authority vide Order No. 44/WBAAR/2018-19 dated 13.03.2019 = 2019 (3) TMI 705 - AUTHORITY FOR ADVANCE RULING - WEST BENGAL. 1. This Appeal has been filed by M/s. Shiva Writing Company Pvt. Ltd. (hereinafter referred to as "the Appellant") on 17.04.2019 against Advance Ruling Order No. 44/WBAAR/2018-19 dated 13.03.2019 = 2019 (3) TMI 705 - AUTHORITY FOR ADVANCE RULING - WEST BENGAL, pronounced by the West Bengal Authority tor Advance Ruling (hereinafter referred to as the 'WBAAR') in the matter of M/s. Shiva Writing Company Pvt. Ltd. 2. The Appellant holding GSTIN 19AAECS4199P1ZE is stated to be in the business of manufacturing and supplyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds: a) The Appellant stressed on the Notification No 12/2017-CT dated 28.06.2017 (corresponding State Notification No. 1152-FT dated 29.06.2017) where it has been specifically stated that HSN codes are to be mentioned only up to the first 4 digits on a tax invoice and no more than that. Minutes of the 14th GST Council Meeting Para 29.1 clearly stated that GST Rates would generally be prescribed at the 4 digit HS Classification unless it is required to specify the rate for a good at 6 or 8 digit levels. This would mean that different rates of tax are applicable for items at 6 or 8 digit levels, otherwise prescribed rate at 4-digit HSN Code shall be applicable for all goods. The WBAAR had gone beyond such rule of law and arbitrarily stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ips are declared to be taxable at the rate of 12%. c) The Appellant also stated that it is no longer res integra that if a particular entry or a provision has two interpretations, the interpretation which is beneficial to the assessee shall be taken into consideration. Based on this very judicial precedent, the rate of tax of pen tips and balls should be taxable at the rate of 12%. Initially, the Customs Authorities also allowed imports and exports at the rate of 12% but from December 2018 onwards, the Customs Authorities started questioning such rate of tax and then levied IGST at the rate of 18% without any cogent and valid reason. In such a case, due to such excess levy of IGST, the cost of each ball point pen has increased which in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the registered person who has issued the invoice. This notification has no relation with classification of goods. Hence Appellant's representation regarding use of 4- digit HSN code for classification only for "Tips and balls" is completely wrong. b) The appellant stated that since ball point pens are taxable at the rate of 12%, parts of ball points pen specifically 'tips and balls' should be classified in such a manner so that rate of tax on these items would also be 12%, as there is no specific rate prescribed for parts of ball point pens vide Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1125-FT dated 28.06.2017). The Appellant's submission is not correct due to the following reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pens are not taxable at the rate of 12% under HSN 9608, then at what rate they shall be taxable and under which HSN Chapter they will be classified. 9. For the sake of clarity these entries of the following Chapter Headings are reproduced below: Chapter Heading Description of Goods 9608 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 9608 10 Ball point pens 9608 30 Fountain pens, stylograph pens and other pens 9608 60 Refills for ball point pens, comprising the ball ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 'tips and balls of ball point pens' are essentially 'parts of refills' and the refills are parts of ball point pens. "Ball point pens" are classified under Sub-heading no. 9608 10 attracting tax @ 12% while "Refills for ball point pens comprising the ball point and ink-reservoir" are classified under Sub-heading no. 9608 60 attracting tax @ 18%. Pen nibs and nib points as per HSN entry 9608 91 are very different from ball point tips and balls as used by the Appellant. Primarily 'Tips and balls' are part of refill, and since there is no specific Sub-heading allotted to these parts. these should be classified under residuary Sub-heading as 'Others- in 9608 99. attracting tax @ 18%. It is clear from the table in para 11 that the tips and ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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