TaxTMI 
TaxTMI 
2022 (11) TMI 206
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.... products namely, Geomembranes under the GST Tariff and claim that Geomembranes merit classification under Heading 5911 Sub Heading 59111000, as textile products and articles for technical uses. 3. The applicant has submitted details like manufacturing process, materials used for manufacture, use of the product as follows: 4. Geomembrane 4.1 The BIS has published IS 15351:2015 for the products, namely, Laminated HDPE woven Geomembrane for waterproof lining. These goods are also known and referred to in the trade by various other nomenclatures like Agro-textiles, Geo-grid Fabrics, and the like. However, the products are basically in the nature of fabrics, and they are used for water proofing in ponds, and for agricultural applications. The BIS has laid down specifications for different types of woven Geomembranes. The applicant has BIS licence to manufacture different types of woven Geomembranes. 4.2 Manufacturing process (a) The basic raw materials for manufacturing Geomembrane is High Density Polythene Granules (HDPE Granules) and Master Batch containing carbon black. These raw materials are melted in Extruder by applying heat and friction, and they are extruded in form of th....
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....re which keeps diseases at bay making it an ecologically sustainable symbiotic system. ii) Biofloc technology ensures minimal water exchange and keeps the pH levels steady by feeding on the nitrogen produced by the fish & shrimps. In conventional farming where Biofloc technology is not used nitrogen is flushed out through water exchange every 25-30 days to keep the aquatic animals disease free. The Biofloc uses up the nitrogen and converts it into proteins for the animals. iii) For Biofloc technology to be used, Geomembrane lined ponds are a must. Ponds lined with Rainshield Reinforced Geomembranes insulate the animals from diseases. iv) Biofloc cuts down fish meal giving cost advantages to the farmers. Production per unit area is high in biofloc system. v) The stocking destiny of animals in Geomembrane lined biofloc pond is twice the density of an ordinary unlined pond. vi) Aquaculture ponds using Biofloc technology can bring big benefits to aquaculture farmers. 5. The applicant has submitted that Heading 5911 of the Tariff is the most appropriate classification for the products viz. Geomembrane, because the product is textile products for technical uses. The product is....
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....and used for technical purposes, it would be relevant to find out what is "Textile products and articles" and "Textile fabrics". 7. Shree Ambica submits as follows:- i. The Hon'ble Supreme Court in case of Porritts & Spencer (Asia) Ltd. 1983 (13) ELT 1607 (SC) has held that the word "textiles" was derived from the Latin "texere" which meant "to weave", and it meant any woven fabrics. It is further held that when yarn of any material and description was woven into fabrics, what came out into being was a "textile" and it was known as such. Phenomenal advancement in science and technology resulting in a large variety of fabrics manufactured from materials till then unknown or un-thought of and new techniques invented for making fabric out of yam have also been taken into consideration by the Hon'ble Supreme Court while laying down the law that any woven fabrics were "textiles" irrespective of the materials used, technique of weaving adopted and the end-use of the product. ii Plastic is a well known textile material and various varieties of yams and fabrics are produced out of plastic materials, namely, terelene, polyester, nylon, acrylic, texturized yarns, silicon yams, e....
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....nd that these goods were articles of plastic because they were made of HDPE tapes and also the Revenue's reliance on judgement of the Hon'ble Madhya Pradesh High Court in case of Raj Packwell Ltd. 1990 (50) ELT 201 (M.P) have not been accepted by the Hon'ble Gujarat High Court; and it is also held that Raj Packwell Ltd. was not a case where classification of fabric of plastic was considered. 11. The jurisdictional High Court, has in terms held that the judgement of the Hon'ble Supreme Court was an answer to what was the Revenue argued about what was textile, and whether woven fabric of plastic material was a textile product or not (para 55 of the judgement); that plastic was used for producing textile fabrics, and raw material for various fabrics was plastic (para 53 of the judgement); that the judgement in Raj Packwell Ltd. had nothing to do with HDPE fabric; and that woven fabric would be textile irrespective of the method of weaving through any technique and the materials used for weaving may also be anything like cotton, silk, rayon, nylon or any other description or made out of any other material. But when any such material was woven into fabric, what came int....
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.... admittedly textile fabrics, and are coated or laminated with plastic; and Geomembranes are used for technical purposes like water proofing of Ponds and lining of fields for agricultural applications. It is submitted that considering this position, the Authority for Advance Ruling under GST for Daman, Diu and D&NH has decided in cases of Emmbi Industries Ltd. 2019 (29) GSTL 105 (AAR-GST) that Geomembrane for waterproof lining and used as pond liner laminated textiles were classifiable under Heading 5911. 16. The applicant submits that any contrary decision based on judgement in case of Raj Packwell Ltd. (supra) and without considering the law of the land laid down by the Hon'ble Supreme Court in case of Porritts & Spencer (Asia) Ltd., and also the judgement of the jurisdictional High Court in case of CTM Technical Textiles Ltd. is in the nature of per incuriam; and hence not requiring any consideration being contrary to the binding judgements of the Hon'ble Supreme Court and the Hon'ble High Court. Textile products and articles 17. The applicant submits that woven fabrics come into existence at intermediate stage, and such woven fabrics are processed further to manuf....
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....s to Textile products and articles, for technical uses, specified in Note-7 to this Chapter. The broad description of the goods therein makes it clear that the goods classified under Heading 5911 of the Tariff are not textile fabrics, that is to say, products brought into existence by mere weaving; but the goods classified there under are textile products and articles, which are produced upon subjecting textile fabrics to further operations or processes. Such textile products and articles cease to be textile fabrics for the purpose of classification under Chapter 59 of the Tariff. 19. The applicant submits that the terms products and articles are not defined under the Tariff. Dictionary meaning of the term Product is an article or substance that is manufactured or refined for sale. The term "article" in Dictionary is explained as a particular item or object, typically one of a specified type. In Collector C Excise V/s. Protein Products of India 1988 (38) ELT 749 (SC), the Hon'ble Supreme Court has observed that the word product was defined in Webster's Comprehensive Dictionary as anything produced or obtained as a result of some operation or work. 20. The applicant submit....
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....s are separately referred to under Clause (b), while giving a few examples of such textile articles. The applicant submits that various types of goods like Bolting cloth. Straining cloth of a kind used in oil presses etc. are referred to under Clause (a) of Note-7, signifying that such fabrics or cloth cease to be textile fabrics for the purpose of classification under Heading 5911 of the Tariff, and such products are considered to be textile products because they are meant for technical uses. Under Clause (b) of this Note also, products like textile fabrics and felts are referred to, again signifying that a product ceases to be textile fabrics for the purpose of classification under Heading 5911 when it is obtained by subjecting textile fabrics to further operation/s and process/es. 25. It is submitted by the applicant that under Heading 5911 of Harmonious System of Nomenclature, it is explained that the expression Textile articles of a kind used for technical purposes are any of the fabrics which have been made up and also textile fabrics and felts of a kind used in paper making or similar machines. It is also explained under HSN that the textile articles of this Heading may inc....
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....tted as follows:- i. The Ministry of Textile implemented a production linked incentives Scheme for textiles in order to provide incentives to the textiles manufacturer vide Not. No. 12015/03/2020-IT dated 24-9-21. The goods viz. Geo Textiles including Geomembranes are listed under the category of technical textile products in Annexure-III to the Notification, at Sr. No. 1 ii. Geomembranes have been classified under HSN 54071099 in the above Notification in as much as these are technical textiles products of Chapter 54. iii. The product manufactured by M/s Shree Ambica is such textile fabrics are coated/laminated form of Geomembranes and hence aptly classifiable under Heading 5911 as coated technical textile. 29. The applicant vide letter dated 11-7-22 has submitted Test Report No. 100/04-1819/64 dated 28-6-18 issued by Indian Institute of Packaging (An autonomous body under the Ministry of Commerce & Industry. Govt, of India) for the product 'Laminated HDPE Fabric for canal lining' (Type-I) wherein 'width of Tape' is mentioned 3.1 mm C.L. Ref, Result obtained 3.0 mm and Remarks mentioned 'complies'. 30. Question on which Advance Ruling sought 1. Whe....
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....aded on circular looms or flat looms and by employing weft and warp method of weaving, woven fabrics are produced. 36.3 Rolls of uncoated fabrics loaded on extrusion lamination machine are drawn for feeding into the laminating unit. Mix of Low Density Polythene (LDPE), LLDPE and colour/black master batch is fed into the extruder through a Hopper, and melted by applying heat and friction, for forming a thin film in a molten state. 36.4 Uncoated fabric is thus coated /laminated on one side by this molten mix, and passed over a chill roll containing chilled water. Edges of coated/laminated fabrics are trimmed and then wound on steel pipes on a winder. Same way, the other side of the fabric is also coated /laminated to form a waterproof fabric. For increasing thickness of such fabric, one side coated/laminated fabrics are sandwiched laminated with a film and then laminated again with one more layer of fabric to form a coated/laminated fabric of higher thickness. Thereafter overlap sealing is done to increase the width of the coated/laminated fabric, and they are cut in required length to obtain required size of Geomembranes. 36.5 Now we discuss the flow of classification for the abo....
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....bes, whether or not folded along with the length. (iii) Strip, and articles referred to in (i) and (ii) above, compressed or twisted. If the width (or apparent width) is not uniform, classification is to be decided by reference to the average width. This heading also includes multiple (folded) or cabled strip and the like ". 36.8 The above "HDPE strips or tapes less than 5 mm" of 5404 90 20 are Woven into Fabrics shall be covered under Heading 5407. HSN 5407 is reproduced as under ; 5407 - Woven Fabrics of Synthetic Filament Yarn, including Woven Fabrics obtained front materials of Heading 5404 ". * "5407 20 - Woven Fabrics obtained from strip or the like Woven Fabrics from HDPE Strips and Tapes of less than 5 mm of Heading 5404 shall be covered under Heading 5407 20 of the HSN. The above Woven Fabric is subjected to sandwich lamination of plastics and brings into existence a new product viz. Geomembranes pond lining fabrics. The said Geomembranes pond lining fabrics are supplied in piece form or are in cut to length as per the specification of customer. 36.9 In this regard, we note that the Strips made from HDPE granules, have width less than 5 mm and are then weaved.....
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.... or simply cut to rectangular (including square) shape (other than those having the character of the products of Heading 5908 to 5910), the following only (i) Textile fabrics, felt and felt line woven fabrics, coated, covered or laminated with rubber, leather or other materials, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams); (iv) Flat Woven textile fabrics with multiple warp of weft whether or not felted, impregnated or coated, of a kind used in machinery or for other technical purposes. " 36.11 Construing the wordings of Chapter Note 7(1 )(a) to Chapter 59 that textile fabrics coated with 'other materials' used for technical purposes are included in this Chapter, we hold that the goods Geomembrane, though coated with Plastic but used for technical purposes finds place in the Tariff 5911, for the dual reason that the phrase 'other materials' used in this Tariff is vast to include plastics also; coupled with the technical use of Geomembrane. 36.12 We find that in Clause (A) of HSN 59.11 of Harmonised....
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....tatute has also been adopted in English, canadian and American Courts. Pollock B. pointed out in Gretfell v. I.R.C. (1976) 1 Ex. D. 242 at 248 that "if a statute contains language which is capable of being construed in a popular sense, such a statute is not to be construed according to the strict or technical meaning of the language contained in it, but is to be construed in its popular sense, meaning, of course, by the words popular sense' that which people conversant with the subject-matter with which the statute is dealing would attribute it." 36.16 The applicant has referred the Ruling pronounce by the Authority for Advance Ruling. Daman. Diu & DNH in case of M/s. EMMBI Industries Ltd. reported in 2019 (29) GSTL 105 (AAR- GST) wherein held that,- Geomembranes for water proof lining - Classification of - "Laminated High Density Poly Ethylene HDPE Woven Geomembrane for water proof Lining Type-II, IS:15351:2015 " - Product known in market as agro textiles - Main product around which whole process of manufacturing revolves is HDPE Woven Fabrics - Perusal of Chapter Note 1 to Chapter 39 of Customs Tariff Act, 1975 making it clear that textile materials of Section XI excluded ....