2018 (5) TMI 597 - AAR - GST

Classification - application of Interpretive Rules - TROPHY - Wooden Trophies & Frames - Metal Trophies & Awards - Trophies made or pop and other Resins - material used in making of Trophy - If the word TROPHY is specifically mentioned under 83062920, So can we sell all trophies made of any material under this HSN? - Held that - As can be seen, the constituent materials, the combination with non-metals, etc. have to be seen to understand the classification. Therefore, even though the word TROPHY is specifically mentioned under 83062920, all trophies made of any material cannot be classified under this HSN and are to be classified as per the applicable provisions of the Customs Tariff Headings. - Question is answered in negative. The question If different code is allocated to trophies assembled of different material, I would like to know if there is a combination of different materials and about 75% (value terms) is getting used of any one Raw Material, under which HSN should we make bill? - interpretation of statute - Held that - The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise - the Chapter Notes may also be referred to understand the inclusions and exclusions therefrom. The applicant is advised to understand the above Rules and determine the classification accordingly - In absence of the needful information as to the constituent materials of the trophies, no exact decision can be given. Application disposed off.

Summary

Issues Involved:
1. Classification of trophies under HSN code 83062920.
2. Classification of trophies made from a combination of different materials.

Detailed Analysis:

Issue 1: Classification of Trophies under HSN Code 83062920

The applicant sought clarification on whether all trophies made of any material could be classified under HSN code 83062920 if the word "TROPHY" is specifically mentioned under this code. The judgment clarified that Chapter 83 of the Customs Tariff, which includes HSN code 83062920, is specifically for "Miscellaneous articles of base metal." The term "base metal" refers to common and inexpensive metals as opposed to precious metals. The HSN notes and Customs Tariff notes for Section XV, which covers base metals and articles of base metal, indicate that the classification under this chapter is strictly for items made of base metal. Therefore, the mere mention of "trophies" under HSN code 83062920 does not imply that trophies made of any material can be classified under this code. The classification must adhere to the material composition of the trophies, with the primary requirement being that they are made of base metal. Consequently, the judgment concluded that all trophies made of any material cannot be classified under HSN code 83062920.

Issue 2: Classification of Trophies Made from a Combination of Different Materials

The applicant also inquired about the appropriate HSN code for trophies made from a combination of different materials, where about 75% (value terms) of one raw material is used. The judgment emphasized that the classification of such composite articles must follow the interpretative rules of the Customs Tariff. Specifically, the HSN notes for Heading 8306 and the General Interpretative Rules indicate that the classification should be based on the material that gives the article its essential character. For composite articles containing both metals and non-metals, the base metal must provide the essential character for classification under Chapter 83. The judgment advised the applicant to refer to the General Rules for the Interpretation of Import Tariff, which detail the principles for classifying goods consisting of more than one material or substance. In the absence of specific information regarding the constituent materials of the trophies, the judgment could not provide an exact classification. Thus, the question was deemed too general and could not be answered definitively without detailed information on the materials used.

Conclusion:

Order:
1. The question of whether all trophies made of any material can be classified under HSN code 83062920 is answered in the negative.
2. The question regarding the classification of trophies made from a combination of different materials cannot be answered due to its general nature and the lack of specific information on the constituent materials.