Case Law Details
In re Jai Shree Krishna Impex (CAAR Delhi)
CAAR held that Toy Balloons mentioned in paragraph (D)(vii) of the Explanatory Notes to heading 9503 refer to latex/rubber balloons is correct and grounded in facts. CAAR am also of the view that “Toy Balloons” made of Latex don’t deserve classification under the heading 9505 as they are not purchased in market as decorative items but as toys for the purpose of play by children. CAAR would further like to emphasize the fact that as proposed in the application that the balloons would be only sold to those above the age of 14 years is bereft of any logic and conviction. Once the balloons are sold off, its very difficult to ascertain the end-use of it. Thus, it appears as an alibi to divert the attention from the fact that the subjected goods shall be classified as “toy balloons” and thus be out of the purview of CTH 9503. Further, it has been elaborated in the application and during the personal hearing that the said goods would be used as water balloons during the Holi festivities. Thus it could feature under the CTH 9505 as it is meant for items for celebrations in a festivity like that of Christmas celebrations. But the product category that is “toy balloons” is fairly and squarely covered under the CTH 9503, as the explanatory notes of the HSN carries a specific entry for it. Also, CAAR do not find any merit classifying the subject goods under CTH 4016, as there is no specific entry for the product.
Further, CAAR find that the subject items are not “Foil Balloons”, which are used for party decoration and for entertainment purposes. As foil balloons ordinarily have shiny reflective surfaces and are often printed with colour pictures and patterns for gifts and parties and they are used for decoration for various events such as birthday, marriage, new-year eve celebration and many other joyous programmes and they are available in various shapes such as alphabets, numbers, heart, star etc., the subject goods do not pertain to the category of foil balloons. The said foil balloons are not used as toys but are only used for decoration and entertainment purposes.
From the description of CTH 9503 as provided above and in Customs Tariff Act, 1975, read with Explanatory Notes of the HSN of CTH 9503 (paragraph 3 & 4 above), it is evident that toy balloons are classifiable under the CTH (4-digit level), more particularly under CTH 9503 0099, if made of rubber latex or any other material. CAAR hold that the subject goods are rightly classifiable under heading CTH 9503 0099 under the heading “other” and the main heading deals with Tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages dolls; other toys; reduced-size (“scale”) models and similar recreational models, working or not; puzzles of all kinds.
Furthermore, from the description of CTH 4016 and CTH 9505 as provided in Customs Tariff Act, 1975, read with Explanatory Notes of the HSN of CTH 4016 (paragraphs 7 & 8) and Explanatory Notes of CTH 9505 (paragraph 5 & 6 above), it may be noted that there is no mention of toy balloons in the said CTH. Moreover, the Explanatory Notes of the HSN of CTH 4016 specifically excludes “Toys, games and sports requisites and thereof of Chapter 95”.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
