TMI Blog2020 (4) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... different than Printing ink and are specifically covered under Tariff Heading 3208, the same do not fall under Tariff Heading 3215. Thus, HSN code of the product Technical Varnish / Medium is 3208. - GUJ/GAAR/R/2019/22 IN APPLICATION NO. Advance Ruling/SGST&CGST/2018/AR/20 - - - Dated:- 20-9-2019 - R.B. MANKODI AND G.C. JAIN MEMBER Present for the applicant: Shri Paramjit Singh, GM 2. The applicant, vide Form GST ARA-01 dated 06.04.2018, mentioned their queries as under: QUERRIES They want to know the correct HSN code for Technical Varnish and Medium being used in printing industry. 3. Statement of relevant facts having a bearing on the question raised above is as follows: 3.1 Technical Varnish and Medium are liquid used in printing of packaging material. It is used in printing job of packaging material as part and parcel of printing ink. Applicant s interpretation of law and/or facts in respect of aforesaid question. 3.2 As these two products are used for printing of packaging material, so it should have the same HSN code just like printing ink. We are not selling these products other than to printers and these are exclusively used f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal varnish, medium or tinting ink) on the other hand is not used for protecting any article of substance, rather it is used for printing of substance by applying a process which is called printing. As it is used for printing of substance by applying a process which can be called printing, so it should not be treated anything other than printing ink. 4. The Central Goods Services Tax and Customs Commissionerate, Vadodara-II, has submitted the point wise compliance report/comments, as under: (i) The activity is manufacturing of varnish , Medium and Printing ink are ongoing activity and not a proposed one; (these details are on the basis of manufacturing product shown in their Excise Returns). (ii) This is a fresh application in GST and with reference to Central Excise, M/s. Flint Group is already quoting Chapter Heading against Varnishes and Medium . (iii) From the Excise returns filed by M/s. Flint group, it is observed that during the Central Excise regime, Medium a manufacturing item classified under Chapter S/Heading 32089011 attracts duty @ 12.5%, Printing ink which is classified under Chapter S/Heading 32151190 attracts duty @12.5%, varnish is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd.: Ingredients of Printing ink is Solvent, Resin and various colours. The solvent, i.e. liquid organic compound (Tolune, Methyl Ethyl Ketone etc.,) is a clear, colourless liquid; this is transferred through pipes and at a certain temperature resin is added to this solvent; resin is a binding material which is also a polymer product; this mixture after undergoing heating and cooling processes, is called as Technical Varnish; Colouring material, is added to this mixture, and after undergoing certain processes, the final product i.e. Printing ink / Packaging ink emerges. (vii) Technical varnish is intermediatery product and is the base material of Printing ink. M/s. Flint group, clears printing ink and sometimes, depending upon the need, also supplies technical varnish to their customers. When M/s. Flint Group India P. Ltd. is supplying technical varnish alone, then they use the term Medium . The term technical varnish is used by M/s. Flint group, when it is used as intermediatory product i.e. in their further process. Thus, Medium / Technical varnish is independent product and is being sold to printing industries . As such, medium and printing ink ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As such, Technical Varnish / Medium and Printing ink are having separate identity and, hence, both are distinct products. 9.1 It is observed that the Explanation (iii) and (iv) of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 provides as follows:- Explanation . - For the purposes of this notification, - (i) (ii) (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 9.2 Further, Hon ble Supreme Court in the case of L.M.L. Ltd. Vs. Commissioner of Customs [Civil Appeal No. 3764 of 2003, decided on 21.09.2010 reported at 2010 (258) ELT 321 (S.C.)] = 2010 (9) TMI 12 - SUPREME COURT has held as follows :- 12. In Collector of Central Excise, Shillong v. Wood Crafts Products Ltd. repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shes and lacquers are by use of a brush or roller. The main industrial methods used include spraying, dipping and machine-coating. This heading also includes: (1) Varnishes intended to be diluted at the time of their application. They consist of resin dissolved in a small quantity of solvent and of ingredients such as anti skinning agents and certain third thixotropic or drying agents which make them suitable for use solely as varnishes. Varnishes of this description, in which the secondary ingredients are also in solution, can be distinguished from the solutions defined in Note 4 to the Chapter on the basis of the difference in the chemical nature of their respective secondary ingredients and the consequent differences in the functions performed by those ingredients in the two types of solutions. (2) Radiation-curable varnishes , which consist of oligomers (i.e., polymers comprising 2, 3 or 4 monomer units) and cross-linking monomers, in volatile solvents, with or without photo-initiators. These varnishes are cured by the action of ultra-violet light, infra-red light, X-rays, electron beams or other radiation to form cross-linked, solvent-insoluble network struct ..... 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