Narrow woven fabric classification turns on width and selvedges, placing polypropylene yarn goods under Tariff Heading 58063990.

Classification of narrow woven fabrics under GST depends on the Customs Tariff Act, 1975, including Chapter Note 5 to Chapter 58. A woven product of polypropylene yarn with a width not exceeding 30 cm and selvedges on both edges met the statutory definition of narrow woven fabrics because the selvedges were formed during the weaving process. The earlier view that the product lacked selvedges was not accepted. The product was therefore classified under Tariff Heading 58063990 and not under Tariff Heading 54071019, with the applicable GST rate following that tariff classification.

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Issues: Whether the product described as narrow woven fabric of polypropylene yarn, of width not exceeding 30 cm and provided with selvedges on both edges, is classifiable under Tariff Heading 58063990 or under Tariff Heading 54071019.

Analysis: Classification under GST is to be determined in accordance with the Customs Tariff Act, 1975, including the relevant section notes and chapter notes. Chapter Note 5 to Chapter 58 defines narrow woven fabrics as woven fabrics of a width not exceeding 30 cm, whether woven as such or cut from wider pieces, with selvedges on both edges, as well as tubular woven fabrics of flattened width not exceeding 30 cm and bias binding with folded edges of the stipulated width. The width of the product was not in dispute. The dispute centred on whether the product had selvedges on both edges. On the material placed, the selvedges were formed in the weaving process itself, and the product satisfied the definition of narrow woven fabrics. The earlier view that the product did not have selvedges was not accepted.

Conclusion: The product is classifiable under Tariff Heading 58063990 of the Customs Tariff Act, 1975 and not under Tariff Heading 54071019.

Final Conclusion: The advance ruling was modified and the appeal succeeded on the classification issue, with the applicable GST rate following the tariff classification.

Ratio Decidendi: Where the width condition and the requirement of selvedges on both edges are satisfied, woven textile goods fall within the statutory definition of narrow woven fabrics for tariff classification.

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