Page 171 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : FLINT GROUP INDIA PRIVATE LIMITED 129
emerging from Harmonised System of Nomenclature (HSN) - HSN Explanato-
ry Notes are dependable guide for interpretation of Customs Tariff. [para 9.2]
Ruling in favour of department
CASES CITED
Akhtar Akbar v. Assistant Collector — Order of Madhya Pradesh High Court — Referred ... [Para 3.3.2]
L.M.L. Ltd. v. Commissioner — 2010 (258) E.L.T. 321 (S.C.) — Relied on ...................................... [Para 9.2]
REPRESENTED BY : Shri Paramjit Singh, GM, for the Assessee.
[Order]. - The applicant, vide Form GST ARA-01, dated 6-4-2018, men-
tioned their queries as under :
Queries
2. 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 pack-
aging 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 for printing
purpose only.
3.3 The applicant vide letter dated 12-9-2018 submitted that their prod-
uct, printing ink and medium is used only for printing purpose and they are sell-
ing it to printers only.
3.3.1 Varnish on the other hand is defined as a fluid or solution which
on application in thin layers by brush or otherwise, dry within a short period by
evaporation leaving a film of smooth shiny, elastic oil and resin, resistant to its
surrounding atmospheric conditions.
3.3.2 In Akhtar Akbar v. Assistant Collector, Central Excise, the High Court
of Madhya Pradesh noted in paragraph 17 that in taxing statutes, which have to
be construed strictly, it is the natural meaning of the word which must be ad-
hered to. In the absence of any indication in the statute itself, it will not be rea-
sonable to restrict or expand that meaning only because a commodity clearly fall-
ing within its ambit is, for certain purposes, given another name in commerce. In
this decision, it referred to several dictionary meanings of the term ‘varnish’
which was predominantly described as a colourless, viscous liquid coated over
surfaces to lend a lustrous effect to the surface on which it is applied. The
Hon’ble High Court emphasized how it would appear from the meaning of the
word ‘varnish’ that it is a generic name given to a homogeneous solution of
gums or resins in alcohol, linseed oil or the like which is coated on various arti-
cles for protective or decorative purposes. Particular reference to the definition of
‘varnish’ in Encyclopedia America (Vol. 27) as relied on by the Hon’ble High
Court would assist their understanding :
“A practical varnish will cover the following requirements : It must be
a homogeneous fluid or solution; must be fixed or permanent in effect as to
GST LAW TIMES  7th May 2020  171