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TMI Blog2020 (8) TMI 776X X X X Extracts X X X X X X X X Extracts X X X X ..... ied with an adhesive coating resulting in a hologram would be classified under Heading 4901 or 3919. It was held by Apex Court that the primary use of the product is security and not the quality of being adhesive. The primary use of such tape is by virtue of its adhesiveness to bind and package containers in which goods are to be stored and transported. Obviously, in such an example, the printed monogram of such adhesive tape would be incidental to the primary use of the said goods - the adhesive tape. In the present case also, the primary use of the Security Excise labels is for security. Akin to Note No.2 to entry 49 in Central Excise Tariff, a similar Note No. 12 is existing in Chapter 48 of GST Tariff - Also, the sixth edition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aka. MCAL is into the activity of printing of security excise labels for supply to various distilleries as per the directions of the Government of Karnataka. The Commissioner of State Excise, Government of Karnataka has issued Order for procurement of security excise labels. The rate for printing and supply of security excise labels is approved by the Department of Excise, Government of Karnataka every year. 3. The applicant (MCAL), for the purpose of printing and supply of labels as per the requirement of Department of Excise, Government of Karnataka, has entered into an agreement dated 13th September 2017 with M/s. Manipal Technologies Ltd., for carrying out printing of labels in the premises of MCAL for further supply to various disti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AL HEARING: / PROCEEDINGS HELD ON 30.07.2020 5. Sri. Girish, Cost Accountant and duly authorised representative of the applicant appeared for personal hearing proceedings on 30.07.2020 before this authority and reiterated the submissions already made along with the application. DISCUSSION FINDINGS 6. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 6.1 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.4 We observe that the Hon ble Supreme Court in the case of M/s. Holostick India Ltd. 2015 (4) TMI 357 - SUPREME COURT dealt with an identical issue. In that case, the question was whether a coated metallised film (classified under Central Excise Tariff 39.20.36) undergoing embossing and applied with an adhesive coating resulting in a hologram would be classified under Heading 4901 or 3919. The judgment was given keeping Note No.2 to entry 49, which is given below: Except for the goods of Heading No. 39.18 or 39.19, plastics, rubber and articles thereof, printed with motifs, characters of pictorial representations, which are not merely incidental to the primary use of the goods, fall in Chapter 49 The relevant paras f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the HSN and the internationally accepted nomenclature was taken into account to reduce disputes on account of tariff classification . Accordingly, for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the HSN. This being the expressly acknowledged basis of the structure of Central Excise Tariffin the Act and the tariff classification made therein, in case of any doubt the HSN is a safe guide for ascertaining the true meaning of any expression used in the Act. The ISI Glossary of Terns has a different purpose and, therefore, the specific purpose of tariff classification for which the internationally accepted nomenclature in FISN has been adopted, for enacting th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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