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TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 333
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....ide by side, on the same loom. The width of the narrow fabrics manufactured is below 12 inches. 3. The applicant sought for the Advance Ruling in respect of following question: Question- Whether the Narrow woven fabrics manufactured are classifiable under Tariff Heading No. 58063990? Statement containing the applicant's view point and submissions on issues on which the advance ruling is sought: 4. The Section 9(1) of the CGST Act, 2017 and the SGST Act, 2017 are the charging sections which levy CGST and SGST respectively on all intra-state supplies of goods or services or both, at such rates as may be notified by the Government on the recommendation of the Council. 4.1 In exercise of the power conferred under Section 9(1) of the CGST Act, 2017 as well as SGST Act, 2017, Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 and the Notification No.01/2017-State Tax (Rate) dated 28.06.2017 respectively which specifies the rate of CGST and SGST respectively to be levied on different products along with their corresponding Chapter/Headings/ Sub-headings/ Tariff item. Thus, the rate of GST will depend on the schedule of the Notification under which the g....
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.... GOODS OF HEADING 5807; NARROW FABRICS CONSISTING OF WARP WITHOUT WEFT ASSEMBLED BY MEANS OF AN ADHESIVE (BOLDUCS) 5806 10 00 - Woven pile fabrics (including terry towelling and similar terry fabrics) and chenille fabrics 5806 20 00 - Other woven fabrics, containing by weight 5% or more of elastomeric yarn or rubber thread - Other woven fabrics: 5806 31 -- Of cotton: 5806 31 10 --- Typewriter ribbon cloth 5806 31 20 --- Newar cotton 5806 31 90 --- Other 5806 32 00 -- Of man-made fibres 5806 39 -- Of other textile materials: 5806 39 10 --- Goat hair puttis tape 5806 39 20 --- Jute webbing 5806 39 30 --- Other narrow fabrics of jute 5806 39 90 --- Other 5806 40 00 - Fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)." 9. From the description of goods given under the above Tariff Headings, it is evident that the product manufactured from polyester yarn by the applicant is appropriately classifiable under Tariff sub-heading 58063990. 10. The applicant has further submitted that the scheme of the Tariff is determined the coverage of ....
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....v) They have also submitted copies of ER-1 Returns from April-2017 to June-2017 and stated that formerly they were not manufacturing Narrow woven fabrics, hence, the question of its classification for the earlier period does not arise. DISCUSSION & FINDINGS: 13. We have carefully gone through the facts of the case, written and oral submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing and the applicable provisions of the GST Laws in this regard. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 14. In this case, a moot point is to be decided regarding classification of "Narrow woven fabrics". 15. Few facts relevant for the present purpose, those are as follows: (i) The applicant is engaged in manufacturing of narrow woven fabrics by process of weaving from polyester yarn and its width is not exceeding 30 cm. (ii) From the desc....
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....row woven fabrics" means: (a) Woven fabrics of a width not exceeding 30 cm, whether woven as such or cut from wider pieces, provided with selvedges (woven, gummed or otherwise made) on both edges; (b) Tubular woven fabrics of a flattened width not exceeding 30 cm; and (c) Bias binding with folded edges, of a width when unfolded not exceeding 30 cm." B. CHAPTER SUB-HEADING 5806: "5806 NARROW WOVEN FABRICS OTHER THAN GOODS OF HEADING 5807; NARROW FABRICS CONSISTING OF WARP WITHOUT WEFT ASSEMBLED BY MEANS OF AN ADHESIVE (BOLDUCS) 5806 10 00 - Woven pile fabrics (including terry towelling and similar terry fabrics) and chenille fabrics 5806 20 00 - Other woven fabrics, containing by weight 5% or more of elastomeric yarn or rubber thread - Other woven fabrics: 5806 31 -- Of cotton: 5806 31 10 --- Typewriter ribbon cloth 5806 31 20 --- Newar cotton 5806 31 90 --- Other 5806 32 00 -- Of man-made fibres 5806 39 -- Of other textile materials: 5806 39 10 --- Goat hair puttis tape 5806 39 20 --- Jute webbing 5806 39 30 --- Other narrow fabrics of jute....
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....nd weft fabrics. These products are cut from wide fabrics and not provided, therefore, with a selvedge, either real or false. The products referred to above includes both ribbons and webbing as well as certain galloons having the characteristics of woven ribbons." From the above, it is seen that to classify the product under HSN code 5806 as "narrow woven fabrics", same has to satisfy the following conditions: (i) It should be warp and weft fabrics in strips of a width not exceeding 30 cm.; (ii) It should have selvages (flat or tubular) on both edges. 18. We find that the product in question is manufactured by process of weaving from polyester yarn and its width is not exceeding 30 cm. However, it is not forthcoming from the submission that the product is having selvedges (flat or tubular) on both edges. Since, the product is not provided with a selvedges (flat or tubular) on both edges, it does not meet the definition of narrow woven fabric of being provided with selvages, as elaborated above. Hence, it would not be considered a narrow woven fabric. The said woven fabrics is, therefore, not fall under heading 5806 and to be classified with ordinary....