2018 (9) TMI 1343

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.... GST Act"). Advance Ruling is admissible under Section 97(2)(a) of the GST Act. The Applicant submits that the question raised 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 agricultural produce such as, potato and onion. The Applicant also manufactures other woven PP/HDPE bags, FIBC bags which may be used for packing of cement, fertiliser and food grain. Ruling is, however, sought for the Polypropylene Leno Bags. The c....

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....made, not of jute or of other textile bust fibres of Heading 5303, but of manmade textile materials which are not flexible intermediate bulk containers but are of polyethylene or polypropylene strip or the like. The product PP Leno Bags, if described as only such, can be placed under either Tariff Code if merely these Tariff descriptions are referred to. 5. The Applicant submits that Note 2(p) of Chapter 39 of the GST Tariff (Plastics and articles thereof) does not cover goods of Section XI (textiles and textile products). There is no other criterion stated to exclude goods from being included as Plastics and articles thereof vis-a-vis Chapter 63. The Applicant also submits that, Note 1(g) to Section XI of the Tariff Act states tha....

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....he width of the tape used in the weaving and whether or not there is a layer/lining in these bags. The specifications of the PP Leno Bags being manufactured by the Applicant, therefore, become an important feature for determining their classification for the purpose of GST. 9. IS 16187:2014 issued by the Bureau of Indian Standards specifies that, PP Leno Woven sacks for packaging and storage of fruits and vegetables should have range of width from 2.0 to 2.5 mm. Since, the Ruling sought for is specifically for PP Leno Bags used for packing agricultural produce such as potato and onions, the BIS for fruits and vegetables is considered solely. 10. Therefore to classify the product PP Leno Bags both the Explanatory Notes, as well as t....