LexCAMLIN LIMITED versus COMMNR. OF CENTRAL EXCISE, MUMBAI
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[2008] 12 S.C.R. 1223 CAMLIN LIMITED A v. COMMNR. OF CENTRAL EXCISE, MUMBAI (Civil Appeal Nos. 4507-4508 of 2002) I SEPTEMBER 3, 2008 B _,. [ASHOK BHAN AND V.S. SIRPURKAR, JJ.] Central Excise Tariff-Act, 1985 - Chapter Sub-Heading 3215.10 or 3215.90 - Marker inks, Camel fount drawing ink, waterproof drawing ink, spl.drawing ink black, rapidugraph ink c black, designers' Indian ink black and sketching pen ink - Classification of- Held: Inks other than marker inks are writing inks - Thus, classifiable under CSH 3215.10 and exigible to nil rate of duty - Marker inks are used in marker pens - Hence, classifiable under CSH 3215.10 and exempt from D ~ paymenr of excise duty - Tribunal erred ,in relying upon HSN for classifying marker inks under CSH 3215. 90 - Entries under HSN and Indian Tariff Entry are completely different - When entries in HSN and the said Tariff are not aligned, reliance cannot be placed upon H$N for classification of goods under E the said Tariff - Thus, order of tribunal to that extent is set aside - Interpretation of statutes. Appellant-assessee is engaged in manufacturing of various kinds of marker pens and sketch pens. With -"' regard to levy of excise duty, tribuna.I relying on HSN F ... held that camel fount drawing ink, waterproof drawing ink, spl.drawing ink black, rapidugraph ink black, designers' Indian ink black and sketching pen ink manufactured by assessee, were writing inks. They were ~l classifiable under CSH 3215.10 and exigible to nil rate of G duty. Marker inks not being writing inks, was classified under residual entry-CSH 3215.90 and exigible to 16% of excise duty. " The questions which arose for consideration in these 1223 H 1224 SUPREME COURT REPORTS [2008] 12 S.C.R. A appeals was with regard to the classification of writing inks and marking inks manufactured and captively consumed by assessee for exigibility to excise duty. B Allowing the assesse's appeal and dismissing the Revenue's appeals, the Court HELD: 1.1 The Indian Central Excise Tariff creates two categories of "writing ink" and residuary entry of "other". The HSN on the other hand creates categories for "printing ink", "other" and then residuary entry of c "other". From the reading of the extract of Chapter Heading 32.15 of the HSN, it is evident that the scheme l and entry of HSN is completely different from Indian Tariff Entry. When the entries in the HSN and the said Tariff are not aligned, reliance cannot be placed upon HSN for the 0 purpose of classification of goods under the said Tariff. [Paras 16 and.17] [1231,C; 1232,G] 1.2 HSN only described "ordinary" writing or drawing inks in Category B. Even inks for ball point pens are c1assified under residuary entry "other". The Indian E Tariff classification puts "all" writing inks together. The fact that all writing inks are considered same and together can also be seen from the letter of the Finance Minister and the trade notices referred to. As per scheme of HSN, "printing inks" are classifiable under specific Chapter Sub F Headings 3215.11 and 3215.19 of the HSN and are described under Note "A". All the rest of the inks are covered in residuary heading 3215.90 and are described under Note "B" "ordinary writing or drawing inks" and Note "C" "other inks". It may be noted that scheme of G Indian Excise Tariff entry is completely opposite and "printing inks" will fall under residuary entry of CSH 3215.90 and "writing or drawing inks" fall under specific entry 3215.10. [Paras 19 and 20] [1233,B-E] 1.3 The assessee has. produced/filed the chemical H composition of its products before the Tribunal. The CAMLIN LIMITED v. COMMNR. OF CENTRAL 1225 EXCISE, MUMBAI marking inks mentioned in HSN in Category C (4) are A based on Silver Nitrate. The marker ink manufactured by assessee admittedly "does not" contain Silver Nitrate. [Para 18] (1232,H; 1233,A-B] 1.4 The findings recorded by the Tribunal insofar as the inks other than marker inks that they were classifiable B under CSH 3215.10 and exigible to nil rate of duty, is accepted and is confirmed. The marker inks would be classified under CSH 3215.10 as the same are used in marker pens which are exempt from the payment of excise duty. The tribunal erred in relying upon the HSN for the c purpose of marker inks in classifying them under Chapter Sub-Heading 3215.90 of the said Tariff. The tribunal failed to appreciate that the ent
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