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Issues:
Classification of Ball Point Pen Ink for Countervailing Duty under Customs Tariff Heading 3215.90 or 3215.10. Analysis: The dispute in the present appeal pertains to the classification of Ball Point Pen Ink for Countervailing Duty. The appellants imported the ink and claimed assessment under Customs Tariff Heading 3215.90 and Central Excise Tariff 3215.10 with a nil duty rate. However, the authorities contended that the ink falls under Heading 3215.90, attracting a 16% Countervailing Duty. A Demand-cum-Show Cause Notice was issued to the appellants for duty payment of Rs. 2,49,076.00, which was upheld by the lower authorities. The appellants argued that Ball Point Pen Ink should be classified under sub-heading 3215.10 as it qualifies as writing ink. On the other hand, the authorities relied on the H.S.N. Explanatory Notes, categorizing Ball Point Pen Ink under 'Other Inks' to classify it under sub-heading 3215.90. The H.S.N. Explanatory Notes list various types of inks, including those for ball point pens, under 'Other Inks'. The Central Excise Tariff and H.S.N. classifications were found to be misaligned. The Tribunal referred to previous cases where it was established that inks used in writing instruments like ball point pens are classified as writing ink under sub-heading 3215.10. The Tribunal emphasized that the classification should be based on constituent material, and since ball point ink is water-based, it should fall under heading 3215.10. Considering the arguments and precedents, the Tribunal allowed the appeal, ruling in favor of the appellants and granting them consequential relief.
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