TaxTMI 
TaxTMI 
2021 (7) TMI 538
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...., 5703 and 5705 based on the method of manufacture. During such manufacturing process products may or may not be impregnated / embedded with Rubber, Latex, PVC etc for providing the backing for the surface textile, according to the customer specification. In all the cases products will have coir as its exposed surface. Such products irrespective of the backing are identified / known as coir products in the market I trade parlance. As there is a general confusion among the trade as to whether coir products if backed by Rubber / PVC / Latex etc would come under the terminology "Coir mats, mattings and floor covering" and the rate of GST applicable on such backed product, the application is filed for the clarification on the following query; "Whether "Mats, Mattings and Floor Covering of Coir", if backed by PVC, Rubber, Latex etc would fall under Tariff Headings 5702, 5703 and 5705 at SI. No.219 of Schedule - I of Notification No. 1/2017-CGST (Rate) dated 28.06.2017, within the 5% tax net, depending upon the respective manufacturing process of its exposed surface?" 4. The applicant submitted that the entries in the GST schedule notified under Notification No.01/2017-Central Tax (Ra....
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....re of the textile materials which serve as the exposed surface of that article when put to use. 4.3. The textile materials which serve as the exposed surface of backed products is nothing but coir and hence such article needs to be classified as coir mats / mattings product only. The product is identified in the market as coir mats / mattings / floor covering and not as PVC / Rubber / latex mat / matting. The essential characteristics of the product is that of coir and the same is marketed / sold and known as coir mats / mattings/ floor covering only. The goods falling under Chapter 57 need to be classified only on the basis of the nature of textile material used as surface when put in use and on the process of manufacturing. The material used as backing of the surface textile material has no relevance in the classification of the goods. 4.4. The above matter of classification was examined by the CBIC and by letter dated 20.05.2011 has clarified that "the carpets and floor coverings whether or not backed by vinyl / latex / rubber are classifiable under respective headings of Chapter 57 depending upon the process of manufacture and the type of textile materials used. It was also c....
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....N 5702, 5703 or 5705 are taxable at the rate of 5% as per Notification No.01/2017 CT (Rate) dated 28.06.2017 as amended by Notification No.34/2017 CT (Rate) dated 13.10.2017. The classification covers only the commodities which are manufactured exclusively using coir fiber. If PVC or rubber or any other materials are stiffed on the textile of coir, which is used as floor mats or matting the same may be classifiable under Customs Tariff head 5703 90 90 and taxable at the rate of 12% as per Entry at SI.No.144 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017. Hence, coir mats and matting backed by PVC, rubber, latex etc cannot be considered as textile of coir and floor coverings covered under HSN 5702, 5703 or 5705 and taxable at the rate of 5%. 6. PERSONAL HEARING: The applicant was granted opportunity for personal hearing on 22.12.2020. Shri. M.Balagopal, Advocate represented the applicant in the personal hearing. He reiterated the contentions made in the application and also produced the sample of the product before the authority and requested to issue the ruling on the basis of the submissions made by them. 7. DISCUSSION AND CONCLUSION: 7.1. The ma....
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....ngs of other textile material; tariff item 5703 90 20 covers carpets and other floor covering of coir and tariff item 5703 90 90 covers other carpets and floor coverings. The Heading 5705 covers other carpets and other textile floor coverings whether or not made up and hence the product of the applicant does not fall under 5705. On the basis of the descriptions of the headings and the relevant chapter notes the product of the applicant is appropriately classifiable under Tariff Sub-Heading 5703 90 90 of the Customs Tariff Act. 7.5. Having come to the conclusion that the product of the applicant is rightly classifiable under Customs Tariff Sub - Heading 5703 90 90 the question that is to be answered is whether the product will attract GST at the rate of 5 % as per SI No. 219 of Schedule I or GST at the rate of 12 % as per SI No. 144 of Schedule II of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. SI No: 219 of Schedule I of Notification No: 01/2017 CT (Rate) dated 28.06.2017 reads as follows; 219 - 5702, 5703, 5705 - Coir mats, matting, floor covering and handloom durries. SI No. 144 of Schedule II of Notification No. 01/2017 CT (Rate) dated 28.06.2017 reads as....