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Copy of the Board's Circular No. 590/27/2001.CX (F.No. 93/2/2001-CX.3) dated 15-10-2001 on the classification of "Printing Ink Medium" undr sub-heading No. 3215.00 or 3208.90 or sub-heading No. 3909.59 is communicated for information and necessary action.

The contents of the Trade Notice may please be brought to the notice of all concerned.

(Issued from file C.No. IV/16/2/2000.CX. POL.)

Sd/-

(JANAKI ARUNKUMAR)

ADDITIONAL COMMISSIONER(TECHNICAL)

To

As per mailing list

(For both Department and Trade)

I am directed to say that a doubt has arisen regarding classification of "reducing mediums" for printing inks. The Department had classified the mediums as printing ink under sub-heading 3215.00. The view of the Audit is that it should have been classified as synthetic resin under sub-heading 3208.90.

2. The matter has been examined in the Board. The CEGAT in their judgment dated 2-2-1996 reported in 1996(83) ELT 451 in the case of M/s. Rainbow Ink and Varnish Mfg. Company Ltd., held that the printing ink medium is different from printing ink and have classified the printing ink medium under sub-heading 3909.59 as a variety of phenolic resin and not under heading 3208.90 as contended by Audit. Printing inks as illustrated under Note "A" of HSN Notes 32.15 are obtained by mixing a firmly divided pigment with a vehicle. The vehicle consists of either natural resins or synthetic polymers, dispersed in oils or dissolved in solvents and contains a small quantity of additives to impart desired functional properties. It, therefore, indicates a clear distinction between a vehicle which acts as a medium for ink and printing ink as such.

3. CEGAT's judgment in the case of M/s. Rainbow Ink and Varnish Mfg. Co. classifying "Printing Ink Medium" under sub-heading 3909.59 has been accepted by the Department. Accordingly, it is clarified that the product would be appropriately classifiable under sub-heading 3909.59 of Central Excise Tariff.

Yours faithfully,

Sd/-

(MALLIKA MAHAJAN)

OFFICER ON SPECIAL DUTY (CX.3)