TaxTMI 
TaxTMI 
2018 (7) TMI 391
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....aised in the Application has neither been decided by nor is pending before any authority under any provisions of the GST Act. The officer concerned raises no objection to the admission of the Application. The Application is, therefore, admitted. 2. The Application states that the Applicant manufactures Polypropylene Leno Bags which are mainly used for packing of potato, onion, raw mango and other vegetables and citrus fruit in bulk. The Applicant also manufactures other woven Polypropylene bags which may be used for packing of cement, fertiliser and food grain. Ruling is, however, sought for the Polypropylene Leno Bags. The composition of these Polypropylene Leno Bags is. i) Polypropylene (hereinafter referred to as "PP") - 92% ....
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....s that the Advance License issued to the Applicant by DGFT was for export under the Tariff Code 3923 29 90, whereas even though the Applicant had earlier cleared the same product in the domestic market under 3923 29 90 but later, started clearing the product under 6305 33 00, on being convinced that the later Tariff code was more specific. 4. The Applicant submits copies of the reports of test conducted by the Central Institute of Plastic Engineering & Technology dated 15.03.2018, the Indian Institute of Packaging dated 27.03.2018 and Indian Oil Corporation Ltd dated 12.03.2018 on his samples of PP Woven Leno Bags. The Applicant also submits a copy of IS 16187:2014 issued by the Bureau of Indian Standards, providing specifications....
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.... as per Advance License issued by the Directorate General of Foreign Trade, Calcutta, License No: 0210207709 dated 23.06.2017 it is seen that the Advance Authorisation was given for "Articles made of polypropylene: Leno bags/sacks containing 100 MT polypropylene granules" (ITCHS: 39232990). This License is valid for 18 months from the date of issuance, i.e. up to 22.12.2018. It is seen that during the same month, i.e., 27.06.207, barely 4 days after issuance of the Advance license by DGFT classifying the products under Chapter 39, the Applicant informs the Revenue that Tariff Heading under Chapter 63 is found to be more appropriate and specific and that they would start clearing their products PP Leno Bags/Sacks in the domestic market under....
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....ariff Code for PP Leno Bags and/or Leno Bags. In the context of textiles the word "Leno" refers to a particular kind of weave in which the warp yarns are twisted together in pairs between the weft of filling yarns. 8. Tariff Sub Heading 3923 29 90 under the GST Tariff covers articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics, namely, sacks and bags (including cones) made of plastics other than polymers of ethylene but not of poly (vinyl chloride). Tariff Sub Heading 6305 33 00 under the GST Tariff covers sacks and bags, of a kind used for packing of goods, made, not of jute or of other textile fibres of Heading 5303, but of man-made textile materials which are not flexibl....
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.... coated, covered or laminated with plastics, or articles thereof, of chapter 39" 10. Thus, to be included in Chapter 63, the width of the tapes, manufactured from Plastics or articles thereof of Chapter 39, used to weave the fabric should be less than or equal to 5mm and should not be impregnated, coated, covered or laminated with plastics or articles thereof, of chapter 39. 11. The Application states that the Applicant manufactures PP Leno Bags, as well as PP Woven Sacks, which are used, or may be used for packing a variety of materials. The inputs, the manufacturing process and the type of looms used for the manufacture of these Bags are the same. 12. From the explanatory notes and clarification provided for determination of clas....