TaxTMI 
TaxTMI 
Eligibility of tufted cotton bathmats/cotton tufted bathrugs covered under ITC (HS) Codes 5703 or 5705 for grant of duty credit scrip under VKGUY/FPS of FTP.
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....ured on a handloom or a powerloom. Since these cotton bathmats/bathrugs were not woven but tufted by using a tufting machine similar to table-top type sewing machine, the expression "cotton powerloom tufted" came to be used on the shipping bills. The Trade and Industry has, therefore, requested to issue necessary clarification that benefit of Chapter 3 of FTP may also be granted to such shipments. 3. The matter has been examined. There is merit in the contention of the Trade and Industry. Policy Circular 21/2009-14 dated 12.1.2010 has already explained how such products would fall in the hand-made category. The entire process requires elaborate manual handling by a worker using a motor operated table top type tufting machine;....
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....bsp; "It is certified that cotton bathmats/rugs, described in the Shipping Bill No.---- dated ----(to write all Shipping Bill Nos., if more than one), as cotton powerloom tufted bathmats/ cotton powerloom tufted bath rugs, and against which the benefit under FPS or VKGUY (to write whichever is applicable) under ITC (HS) Code 5703 or 5705 (to write whichever is applicable) is being claimed under the DGFT File No.-------------- , have been tufted by a worker by using a table-top mounted sewing machine, and it is also certified that all other processes like cutting of the base fabric as per the design, sheering, embossing etc. have been done manually". 5. This self-declaration can be given for shipping bills up....