Classification of Polypropylene Leno Bags under GST Tariff Heading '3923 29 90'

The Authority classified Polypropylene Leno Bags under GST Tariff Heading '3923 29 90', based on exclusion from woven fabrics of plastics in Section XI. The ruling disposed of the application, allowing for appeal to the Odisha State Appellate Authority within 30 days if aggrieved.

---

---

Issues: Classification of Polypropylene Leno Bags under GST Tariff Heading

Analysis:

1. Filing of Application: M/s. Utkal Polyweave Industries filed an application seeking an Advance Ruling on the 'Classification of P P Leno Bags' under Section 97 of CGST Act, 2017 & OGST Act, 2017. The application was admitted as the question raised was not decided by any authority under the GST Act.

2. Applicant's Submission: The applicant, engaged in manufacturing P P Leno Bags, claimed that their product should be classified under Tariff code 63053300. They detailed the manufacturing process and composition of raw materials used in making the bags.

3. Personal Hearing and Additional Submissions: During the personal hearing, the applicant's advocate argued that previous misclassification of goods does not prevent correct classification later. Reference was made to relevant judgments supporting this argument. The jurisdictional officers informed about a similar case in West Bengal where the classification of P P Leno Bags was under dispute.

4. Consideration of Submissions: The Authority considered all submissions and relevant facts. The key issue was to determine the correct HSN Code for the applicant's product. Despite certifications and standards compliance, the focus was on classification under the GST Tariff.

5. Ruling and Reasoning: The Authority ruled that P P Leno Bags should be classified under GST Tariff Heading '3923 29 90'. This decision was based on the exclusion of woven fabrics of plastics from Section XI, which includes textile articles. The ruling also considered the CBEC Revised Duty Drawback rates and relevant judgments supporting the classification decision.

6. Final Disposition: The ruling disposed of the application, providing the classification for Polypropylene Leno Bags. The applicant or jurisdictional officer could appeal to the Odisha State Appellate Authority for Advance Ruling within 30 days if aggrieved by the decision.

---