AI Drafter 
TaxTMI 
TaxTMI 
2021 (9) TMI 1063
X X X X Extracts X X X X
X X X X Extracts X X X X
....Adhesive d. Powder -XINXIN Adhesive Copes e. water Parts of Machine - Screen Printing, Conveyor Belt, 3 chambers has burner Blower, Heater Blower, Cooling Drum and Platter. 3. Functions of various parts of the micro dot coating machine: a. Screen Printing - A roller like structure along with pump installed on the sides. There is a dotted design on the roller which prints the scattered microdots on the fabric. The function of pump is to throw in the adhesive powder and the roller does the printing. b. Conveyor Belt - The fabric travels through whole machine with the help of this belt. c. The machine has 4 chambers out of which, 3 chambers has burner and Blower and 4th Chamber has Heater and Blower. The conveyer Belt takes the cloth through all the chambers of the machine. The Burner and Blower helps in drying and fixing the print on the fabric. d. Cooling Drum - This is the last part where the cloth is put under very low temperature. e. Platter - The final fabric is collected in platter. 4. Process The steps involved are as follows- Unwind---> Screen Coater -----> Scatter---> Suction---> Dryer-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ise requires, for the purposes of this Chapter, the expression "textile fabrics" applies only to the woven fabrics of Chapters 50 to 55 and headings 5803 and 5806, the braids and ornamental trimmings in the piece of heading 5808 and the knitted or crocheted fabrics of headings 6002 to 6006. (c) The applicant submits as follows: (i) The impregnated and coating on the finished goods can be seen with naked eyes. (ii) The manufactured cloth can be bent manually. (iii) The manufactured product is embedded with plastic. However, it is not entirely coated or covered on both sides or completely embedded. The dotted coating has not made the textile fabrics impervious. (iv) The applicant states that the coating on the fabric is plastic in nature and bears dotted after the entire process. (v) The fabric is not the mere material for enforcing purpose instead it is the main raw material. (vi) The product does not fall under heading 5811. In view of the above evaluation impugned product satisfies the specifications mentioned in point 4 of the Chapter Note 2 which reads that CTH 5903 applies to Textile fabrics other than fabr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....down as ultra vires by Madras High Court in case of Madura Coats. From the above mentioned, the applicant submits that the omitted chapter note and the Circular cannot dictate the classification of fabric in question. Therefore, the treatment as mentioned in circular is incorrect and should not be followed. The applicant relied upon the case of Single Bench of Madras HC in case of Madura Coats Ltd. Vs CBEC wherein the Hon'ble High Court has quashed the Board Circular No. 433/66/98-CX dated 27-11-1998. Further the applicant submits that CESTAT was approached vide Appeal No. E/31/2012 in case of Madura Coats Private Limited V Commissioner of Central Excise, Tirunelveli. The matter before the Hon'ble Tribunal was that applicant was engaged in manufacture of coated fusible interlining fabrics of cotton and the department was of the view that the said product will be classified under chapter heading 5903 even in absence of chapter note 2(c). The Hon'ble CESTAT had passed an order stating that the remnant samples of the product should be checked and the officers should pass a fresh order of classification. The characteristics that these samples need to have to merit classification under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e of the belief that the inter-fused lining will not fall under Chapter heading 5903. As mentioned at point (c) of para 2 of this additional submission, the applicant do not satisfy condition 2(4) of the chapter note to chapter 59. Therefore, the product under question will fall out of Chapter heading 5903 and be classified under Chapter heading 5407 as the textile material used is woven or knitted Polyester fabric. The applicant submitted a letter dated 31-7-21issued by Man Made Textile Research Association wherein they opined as follows: Queries 1. : Can impregnation, coating, covering be seen with naked eyes. Ans : Yes, the dots of the coating is being observed by naked eyes. Queries 2 : Can fabric be bent without fracturing, be bent manually around a cylinder of a diameter of 7 mm at a temperature between 15* C and 30*C. Ans: Yes, fabric bent without fracturing around a cylinder of a diameter of 7mm, at a temperature between 15*C and 30* C. Queries 3 : Does fabric bear design resulting from these treatments Ans: Dot coating shows pattern / design on one side of the fabric. Queries 4 : Does the fabric have a continuo....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 13. We have considered the submissions made by the applicant and the revenue. We find the following facts emerging from the applicant's submission: i. The applicant supplies partially coated Polyester fabric (knitted/woven) or partially coated fabric. ii. Said fabric is scattered with micro-dot printing. iii. The subject goods are used as interlining fabric. iv. The resultant fabric is partially coated on one side with scattered dots and the dots are elevated in a manner that the fabric can be attached to another fabric which is used for interlining. 14. The issue before us is the Classification of subject goods. We refer to HSN 5903, to examine its applicability in subject matter. Chapter 59 reads as: "Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use". HSN 5903 reads as: Textile Fabrics, impregnated, coated, covered or laminated with plastics, other than those of Heading 5902. 15. For record, we reproduce the relevant excerpt of Explanatory notes to HSN 5903, reads as f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e General Rules for the Interpretation of CTA, 1975, for legal purposes, classification shall be determined according to the terms of the headings and any Section or Chapter Notes. We shall follow the same in arriving at our pronouncement for Ruling in subject matter. 17. We submit our findings in the following Table. Our findings are based on all the submissions made before us and our inspection of the two sample fabrics submitted by the applicant. S.No. Wordings of HSN 5903; wordings of Explanatory Notes to 5903 Our Findings 1 Textile Fabrics, impregnated, coated, covered or laminated with plastics, other than those of Heading 5902 We find that the fabric is coated with plastics and the fabric is not tyre cord fabric. 2 HSN 5903 does not apply to fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change of colour The dot coating on the goods can be seen with naked eyes. 3 HSN 5903 does not apply to products which cannot, without fracturing, be bent manually around a cylinder of a diameter of....