TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether Model 1 salwar/chudidar sets, comprising three unstitched pieces of fabric, are classifiable as fabrics under Chapters 50 to 55 or as made up articles under Chapter 62; (ii) Whether Models 2, 3 and 4 salwar/chudidar sets, where the top is semi-stitched, fully stitched, or neck-worked, are classifiable as fabrics or as made up articles under Chapter 62, and the applicable GST rate thereon.
Issue (i): Whether Model 1 salwar/chudidar sets, comprising three unstitched pieces of fabric, are classifiable as fabrics under Chapters 50 to 55 or as made up articles under Chapter 62.
Analysis: The set described as Model 1 consisted only of three pieces of cloth, namely top, bottom and dupatta, with no stitching, and the pieces were merely cut from bales or thans. The governing tariff guidance and GST clarification treated mere cutting and packing of fabrics into sets, even with embroidery or embellishment, as not changing their basic character. Such goods continued to be classifiable according to constituent textile material under Chapters 50 to 55. The set did not acquire the characteristics of a finished garment or made up article.
Conclusion: Model 1 is classifiable as fabric under Chapters 50 to 55, depending on the material.
Issue (ii): Whether Models 2, 3 and 4 salwar/chudidar sets, where the top is semi-stitched, fully stitched, or neck-worked, are classifiable as fabrics or as made up articles under Chapter 62, and the applicable GST rate thereon.
Analysis: Models 2, 3 and 4 involved a top that was either cut to shape, fully stitched, or neck-worked, along with unstitched bottom and dupatta pieces. On the tariff notes, articles cut otherwise than into squares or rectangles, assembled by sewing, or otherwise produced in a finished or ready-for-use state fall within the meaning of "made up". By applying the interpretation rules, these sets possessed the essential character of a salwar suit and were not mere fabric pieces. Since made up textile articles are excluded from Chapters 50 to 60, they were classifiable under Chapter 62, specifically under heading 6211 and the relevant subheadings based on textile material.
Conclusion: Models 2, 3 and 4 are classifiable as made up articles under heading 621142/621143/621149, depending on the material, and the GST rate varies with the sale value per piece.
Final Conclusion: The ruling accepts the fabric classification only for fully unstitched sets, while treating the semi-stitched, stitched, or neck-worked variants as made up textile articles under Chapter 62 with rate differentiation based on price.
Ratio Decidendi: A textile set ceases to be mere fabric and becomes a made up article when, as presented for sale, it is cut to shape, assembled, stitched, or otherwise prepared in a form that gives it the essential character of a garment or finished textile article.
TaxTMI 
