Authority confirms HSN for Polypropylene Mats as 4601. Applicant withdraws tax rate query after Notification clarification.

The Authority for Advance Ruling confirmed the HSN Classification of Polypropylene Mats as 4601. The question on the applicable tax rate was withdrawn by the applicant following clarification from Notification No. 6/2018 - Central Tax (Rate) dated 25/01/2018.

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Issues Involved:
1. Whether 4601 as the HSN Classification of Polypropylene Mats is correctRs.
2. If the answer to the above question is in the affirmative, whether entry No. 198A (inserted vide Notification No. 27/2017) is to be applied or Entry No. 103 should be considered for determining the CGST / SGST Tax Rate.

Issue-Wise Detailed Analysis:

1. HSN Classification of Polypropylene Mats:
The applicant, a manufacturer of Polypropylene Mats (PP Mats), sought clarification on whether the correct HSN classification for their product is 4601. The manufacturing process involves interweaving straws made from the extrusion of PP Granules. The mats are also known as 'Plastic Satranj'.

The applicant argued that based on the duty drawback schedule and various notifications, Polypropylene Mats fall under HSN 4601. They cited multiple sources including:
- Notification No.1/2017-Central Tax (Rate)
- Circular No 4/2018 dated 24.01.2018
- Notification No.131/2016-Cus (NT), dt. 31-10-2016
- CESTAT judgment in Supreme Industries Ltd. VS Commissioner of Central Excise-2004-(170) ELT 432 = 2004 (5) TMI 378 - CESTAT, NEW DELHI

The concerned officer concurred with the applicant, stating that the manufacturing process and the product description align with the definition of plaiting materials under Chapter 46, specifically HSN 4601.

The Authority for Advance Ruling (AAR) examined the definitions and notes under Chapter 46, which include materials suitable for plaiting such as monofilament and strips of plastics. The AAR concluded that the Polypropylene Mats fit the description under HSN 4601 as they are made by weaving or binding parallel strands of plaiting materials.

2. Applicable Tax Rate:
Initially, the applicant sought clarification on whether to apply entry No. 198A (2.5% CGST) or entry No. 103 (6% CGST) for the tax rate on Polypropylene Mats. However, this question was withdrawn by the applicant in light of Notification No. 6/2018 - Central Tax (Rate) dated 25/01/2018, which clarified the applicable tax rate.

Conclusion:
Order:
1. The HSN Classification of Polypropylene Mats is confirmed as 4601.
2. The question regarding the applicable tax rate was not answered as it was withdrawn by the applicant due to the clarification provided by Notification No. 6/2018 - Central Tax (Rate) dated 25/01/2018.

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