TaxTMI 
TaxTMI 
TaxTMI 
2022 (10) TMI 441
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....2021. 3. As per the original application, the Commissioner of Customs, Jaipur (Rajasthan) has been declared as the jurisdictional Commissioner of Customs from where import/export is proposed to be undertaken. However, the applicant, vide its letter dated nil forwarded vide email dated 15-7-2021 requested for change of concerned Commissioner of Customs, from where import/export of goods is proposed to be undertaken. On acceptance of request of the applicant, for change of the concerned Commissioner of Customs by the Authority, Secretariat of CAAR, New Delhi requested the concerned Principal Commissioner of Customs, Mundra Port, Gujarat to furnish comments in the matter. 4. The applicant has declared that they are manufacturing and exporting products, namely PP woven fabric unlaminated/laminated, Non-woven fabric unlaminated/laminated, Articles of Non-woven fabric unlaminated/ laminated and High Density Polyethylene (HDPE) woven fabric unlaminated/laminated. Further, as regards manufacturing process of High Density Polyethylene (HDPE) Woven Fabric laminated/unlaminated, it is declared that the manufacturing of the said goods involve extrusion of raw material namely HDPE g....
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....f Item 3923. 7. Personal hearing in the matter was held on 11-10-2021 and the same was attended by Shri Vardhman Doogar, C.A., who began by explaining contents of the application. He briefly explained that they intend to export HDPE fabric, laminated/unlaminated. He also mentioned that they wish to have ruling on classification for the purposes of export as well as imports. Shri Doogar referred to classification decision of Gujarat GST Advance Ruling Authority, also a M.P. High Court judgment in support of his contention that the product in question merits classification under residuary Tariff Heading 3926. 7.1 In order to obtain clarity regarding the question being posed for advance ruling and eligibility of the applicant to seek the same, the Authority posed a few questions : (a) On the question regarding present and proposed line of activities of the applicant, Shri Doogar stated that right now they are in the business of exports and domestic sale only but intend to explore the possibility of imports; and therefore, seek a ruling regarding the classification for both export and import purposes. He was advised to make additional submission cl....
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.... in any of the Heading from 3901 to 3925 would be covered under Heading 3926, which is a residuary entry; therefore, HDPE woven fabric merit classification under 3926 90 99 and the applicant has made domestic sale of the HDPE woven fabric, classifying the same under HS Code 3926 90 99. 8. For their interpretation on classification, they have relied on a few judgments, viz. Advance Ruling No. GUJ/GAAR/R/87/2020 issued by the Gujarat Authority for Advance Ruling, in the matter of M/s. Gujarat Raffia Industries Limited [2022 (60) G.S.T.L. 134 (A.A.R. - GST - Guj.)] and Judgment of Hon'ble High Court of Madhya Pradesh in the case of M/s. Raj Packwell Ltd. v. UOI [1990 (50) E.L.T. 201 (M.P.)]. 8.1 The image of sample (white colour) furnished along with applicant letter dated 25-10-2021 is as below : 8.2 Further, the applicant was requested to mention technical specification of the item which they intend to export or import, viz. length, breadth, shape, whether in rolls or cut-pieces etc., constituent raw material, whether coated, impregnated, laminated or otherwise. The applicant was also asked in case, the fabric is coated, impregnated or laminated, whether such coati....
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....rial namely HDPE granules, films, which are obtained slit into strips: weaving of fabric is done on looms; on perusal of the sample supplied by the applicant, it is observed that item is made by weaving of strips resulting in flat fabric in rolls where width of the strip is 2.44 mm. As per submissions of the applicant the products would be covered under Heading 3926, more specifically under "3926 99 90 - others" for the purposes of export and import. 9.2 As per comments received from the concerned Commissionerate, the item is classifiable under CTH 3923 10 90. It has been contended that tariff entry at CTH 3923 is an inclusive entry; once it includes under CTH 3923 21 00 - sacks/bags, the preceding heading under CTH 3923 10 90 --- Other, includes fabrics of all types of plastics. In this regard, it has also been submitted that in "Customs Tariff with IGST and Foreign Trade Policy (2021-2022) (Vol. I); as per the Duty Drawback Rates (inserted vide Notfn. No. 7/2020-Cus. (N.T.), dated 28-1-2020, the goods having description "HDPE woven fabrics/bags/sacks, whether or not laminated, with or without U.V. stabilization, with or without liners/fasters" are specifically classified un....
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....t understood by the General Notes of Section-XI of Explanatory Notes to HSN, which provides that "In general, Section XI covers raw materials of the textile industry (silk, wool, cotton, man-made fibres, etc.), semi-manufactured products (such as yarns and woven fabrics) and the made-up articles made from those products. However, it excludes a certain number of materials and products such as those mentioned in Note 1 to Section XI, the Notes to certain Chapters or in the following Explanatory Notes on headings in the Section...". 9.7 It is seen that Note 1 to Section XI provides for exclusion of specific items from the Section; and Note 1(h) covers "Woven, knitted or crocheted fabrics, felt or non-wovens, impregnated, coated, covered or laminated with plastics, or articles thereof, of Chapter 39". Therefore, the said General Note read with Note 1(h) to Section XI makes it clear that woven fabrics coated with plastic or articles thereof of Chapter 39 are expressly excluded from the scope of Section-XI. 9.8 In view of above, it is seen that High Density Poly Ethylene (HDPE) woven fabrics, including coated with plastic materials are expressly excluded from the scope of art....
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.... cut they become articles ready for use). HDPE woven fabric is not classifiable under Headings 39.20 and 39.21. 10.4 Heading 3923 covers Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics. It includes sacks and bags (including cones) under Heading 3923 10; Stoppers, lids, caps and other closures under Heading 3923.50; and residual entry others under 3923.90. The explanatory notes to this heading further explain that this heading covers all articles of plastics commonly used for the packing or conveyance of all kinds of products. The articles covered include : (a) Containers such as boxes, cases, crates, sacks and bags (including cones and refuse sacks), casks, cans, carboys, bottles and flasks. The heading also covers : (i) Cups without handles having the character of containers used for the packing or conveyance of certain foodstuffs, whether or not they have a secondary use as tableware or toilet articles; (ii) Bottle preforms of plastics being intermediate products having tubular shape, with one closed end and one open end threaded to secure a screw type closure, the portion below the threaded end being intend....