Page 176 - GSTL_7th May 2020_Vol 36_Part 1

134 GST LAW TIMES [ Vol. 36
(3) Varnishes being solutions of the polymers described in
(C) below, i.e., those of headings 39.01 to 39.13, whatever the weight
of the solvent, containing added substances other than those necessary
for the manufacture of products specified in headings 39.01 to 39.13,
such as anti-skinning agents and certain thixotropic or drying agents,
which make them suitable for use solely as varnishes.
The heading also excludes :
(a) ------------- etc. (heading 32.14).
(b) Printing inks which though having a similar qualitative composition
to paint, are not suitable for painting applications (heading 32.15).
(c) ------------- described in Explanatory Note to heading 33.04.
(d) ------------- (heading 38.24).
(e) ------------- (heading 39.12).”
10.3 Thus, it is evident that the Explanatory Notes for Tariff Heading
3208 includes “Varnishes” but excludes ‘Printing inks’ which though having a
similar qualitative composition to paint, are not suitable for painting applications
(Heading 32.15).
10.4 It is also observed that in the First Schedule to the Customs Tariff
Act, 1975, “Varnishes” : based on polyesters are mentioned against Tariff Item 3208
10 30. “Varnishes” : based on acrylic or vinyl polymers are mentioned against Tariff
Item 3208 20 30 and Varnishes : others are mentioned against Tariff Item 3208 90
41/3208 90 49, all under Tariff Heading No. 3208. Therefore, ‘Technical Varnish-
es”/“Medium” manufactured as an intermediate product and supplied by the
applicant merit classification under Tariff Heading 3208.
11. The applicant has submitted that their product, ‘Technical varnish’,
‘Medium’ or ‘tinting ink’ should not be treated anything other than printing ink.
The ‘Printing ink’ manufactured and supplied by them fall under Chapter Head-
ing 3215 of GST Tariff. The Tariff Heading 3215 reads as follows :-
“All Goods, including printing ink, writing or drawing ink and other inks,
whether or not concentrated or solid, fountain pen ink, ball pen ink”
11.1 We find that the Tariff Heading 3215 covers all Goods, including
printing ink, writing or drawing ink and other inks, whether or not concentrated
or solid, fountain pen ink, ball pen ink. As the ‘Varnishes’ are different than
“Printing ink” and are specifically covered under Tariff Heading 3208, the same
do not fall under Tariff Heading 3215.
12. We also find that during the erstwhile Central Excise regime, in ex-
cise returns, they had classified their manufacturing items, “Printing ink (both
black & others)” under Chapter sub-heading No. 3215 11 90; “Medium” under
Chapter sub-heading No. 3208 90 11; and “Varnish” under Chapter sub-heading
No. 3209 10 10.
13. In view of the foregoing, we rule as under :
RULING
Question 1 : We want to know the correct HSN code for Technical Var-
nish and Medium being used in printing industry.
Answer : HSN code of the product “Technical Varnish”/“Medium”
is 3208.
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GST LAW TIMES  7th May 2020  176