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Issues: (i) Whether the knitted fabrics manufactured by the applicant were classifiable under Chapter 60 and the applicable GST rate thereon. (ii) Whether the woven fabrics and woven fabric bonded with non-woven fabric were classifiable under Chapter 54 and the applicable GST rate thereon. (iii) Whether covers for pillow, latex block and mattress and foot runners and pillow sheets were classifiable as made-up textile articles under Chapter 63 and the applicable GST rate thereon. (iv) Whether chenille yarn was classifiable under Heading 5606 and the applicable GST rate thereon. (v) Whether polypropylene extrusion yarn, polypropylene texturized yarn and polyester texturized yarn were classifiable under Heading 5402 or Heading 5406 and the applicable GST rate thereon.
Issue (i): Whether the knitted fabrics manufactured by the applicant were classifiable under Chapter 60 and the applicable GST rate thereon.
Analysis: The product was found to be knitted fabric on the basis of the manufacturing process and the test report. Chapter 60 covers knitted or crocheted fabrics and specifically excludes only the categories noted in the chapter notes, including knitted fabrics impregnated, coated, covered or laminated under Chapter 59. The material showed that the goods remained knitted fabrics and did not fall within the exclusions. The rate entry applicable to knitted fabrics was treated as a single rate irrespective of constituent textile material.
Conclusion: The knitted fabrics were held to be classifiable under Chapter 60, with GST at 2.5% CGST and 2.5% SGST under the relevant entry.
Issue (ii): Whether the woven fabrics and woven fabric bonded with non-woven fabric were classifiable under Chapter 54 and the applicable GST rate thereon.
Analysis: The woven fabric was found to be made of synthetic filament yarn and therefore fell under Heading 5407. For the bonded product, the woven fabric remained the predominant constituent and the non-woven backing was used for strengthening. Applying the general rules of interpretation and the section note on mixtures of textile materials, the composite product was treated as woven fabric rather than as a separate non-woven article. The applicable rate followed the entry for woven fabrics of man-made textile materials.
Conclusion: The woven fabric and the woven fabric bonded with non-woven fabric were held classifiable under Heading 5407, with GST at 2.5% CGST and 2.5% SGST under the relevant entry.
Issue (iii): Whether covers for pillow, latex block and mattress and foot runners and pillow sheets were classifiable as made-up textile articles under Chapter 63 and the applicable GST rate thereon.
Analysis: These goods were not plain fabrics but finished articles cut, sewn and assembled into useable products. They satisfied the meaning of "made up" in the section notes to Section XI and were better classified as textile made-ups in Chapter 63. The specific tariff coverage for pillow covers, mattress covers and bed linen-type articles supported classification in the respective 6304 and 6302 sub-headings. The applicable rate depended on the value threshold prescribed in the notification for Chapter 63 articles.
Conclusion: The covers for pillow, latex block and mattress were held classifiable under the relevant sub-headings of Heading 6304, and foot runners and pillow sheets under Heading 6302, with GST at 2.5% where the value was below the prescribed threshold and 6% where it exceeded that threshold.
Issue (iv): Whether chenille yarn was classifiable under Heading 5606 and the applicable GST rate thereon.
Analysis: The goods were found to be special yarn produced by twisting core and pile yarns into chenille yarn, matching the tariff description and explanatory notes for chenille yarn under Heading 5606. The test report also supported the identification of the goods as polyester chenille yarn. The rate entry for chenille yarn was applied accordingly.
Conclusion: Chenille yarn was held classifiable under sub-heading 56060020, with GST at 6% CGST and 6% SGST under the relevant entry.
Issue (v): Whether polypropylene extrusion yarn, polypropylene texturized yarn and polyester texturized yarn were classifiable under Heading 5402 or Heading 5406 and the applicable GST rate thereon.
Analysis: The three products were found to be synthetic filament yarns. The classification turned on whether the yarns were not put up for retail sale or were put up for retail sale, because Heading 5402 covers synthetic filament yarn not put up for retail sale, while Heading 5406 applies when put up for retail sale. The ruling therefore recognised a dual classification depending on the manner of presentation and sale. The rate followed the notification entries applicable to synthetic filament yarns for the relevant period.
Conclusion: The polypropylene extrusion yarn, polypropylene texturized yarn and polyester texturized yarn were held to be classifiable under Heading 5402 when not put up for retail sale and under Heading 5406 when put up for retail sale, with GST at the rates prescribed for the relevant period under the cited notification entries.
Final Conclusion: The ruling substantially accepted the applicant's classification claims for the textile products, while holding that the three synthetic yarns would attract different headings depending on retail presentation.
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