TaxTMI 
TaxTMI 
2023 (3) TMI 787
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.... aforementioned raw materials are as under:- * PVC leather commonly known as artificial leather,- * It gives the impression of leather; * It is derived by laminating PVC and fabric; * It is cheaper than leather; * It is classified under HSN 59031090 and leviable to GST @ 12%. * PU Foam also known as polyurethane foam:- * It is classified under HSN 39211390 and leviable to GST @ 18%. * XLPE foam known as cross linked polyethylene foam;- * If s a cross linked closed cell foam with compact feel; * Its resistant to water; * It is classified under HSN 39211390 and leviable to GST @ 18%. * PVC mat commercially known as Heel pad,- * The heel pad is nothing but additional foot support for the driver of the vehicle; * It is classified under HSN 39211390 and leviable to GST @ 18%. 5. Further, the applicant has explained the manufacturing process of PVC floor mat as under:- * PVC leather and PU foam are laminated with each other; * this laminated material undergoes embroidery & is further bonded with XLPE foam; * consequent to the above, cotton thread and adhesive is used to put all the above materials together to make a complete floor mat * the floor mat ....
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....natory Notes to the HSN of the first schedule of CTA, 1975 in terms of explanation 1 to notification No. 1/2017-Central Tax (Rate), which reads as under:- (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 14. Ongoing through the manufacturing process which is mentioned in detail supra, we find that the applicant's product, is an admixture of PVC leather, PU Foam [polyurethane foam], XLPE foam [known as cross linked polyethylene foam]. Cotton thread and adhesive is used to bind all the above materials and then Heel pad is affixed on the PVC mat. 15. Before moving on to decide the issue, it would be prudent to reproduce the competing entries, chapter notes, HSN notes, etc., viz * (A) * (B) * (C) 3904 POL YMERS OF VINYL CHLORIDE OR OF O....
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....nd articles thereof, states as follows:- 2. This Chapter does not cover: (a) to (n); (p) goods of Section XI (textiles and textile articles); * Note 9 to chapter 39, 'Plastics and articles thereof, states as follows: 9. For the purposes of heading 3918. the expression "wall or ceiling coverings of plastics" applies to products in rolls, of a width not less than 45 cm, suitable for wall or ceiling decoration, consisting of plastics fixed permanently on a backing of any material other than paper, the layer of plastics (on the face side) being grained, embossed, coloured, design-printed or otherwise decorated * (D) 5703 CARPETSAND OTHER TEXTILE FLOOR COVERINGS, TUFTED, WHETHER OR NOT MADE UP 5703 10 - Of wool or fine animal hair 5703 10 10 --- Carpets 5703 10 20 --- Mats and matting 5703 10 90 --- Other 5703 20 - Of nylon or other polyamides 5703 20 10 --- Carpets, carpeting and rugs 5703 20 20 --- 100% polyamide tufted velour, cut pile loop pile carpet mats with jute, metre, whichever rubber latex is higher or PU foam backing 5703 20 90 --- Other 5703 30 - Of other man-made textile materials 5703 30 10 --- Carpets, carpeting and rugs 5703 30 20 ....
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....nd apparatus of headings 8401 to 8479, or parts thereof, other than the radiators for the articles of this Section, articles of heading 8481 or 8482 or, provided they constitute integral parts of engines and motors, articles of heading 8483; (f) electrical machinery or equipment (Chapter 85); (g) articles of Chapter 90; (h) articles of Chapter 91: (ij) arms (Chapter 93): (k) lamps or lighting fittings of heading 9405; or (I) brushes of a kind used as parts of vehicles (heading 9603). * Note 3 of Section XVII states as follows . 3. References in Chapters 86 to 88 to "parts " or " accessories " do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those Chapters. A part or accessory which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part of accessory * (F) * Relevant notes of HSN; 87.08 PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF HEADINGS 87.01 TO 87.05. 87 08.10 - Bumpers and parts thereof - Other parts and accessories of bodies (including cabs): 8708.21 -- Safely sea....
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....the PVC carpet mats under CTH 3918, while the Advance Ruling Authority [for short 'AAR'] of Haryana in the case of M/s. Stinzo Automotive (P) Ltd [2021 (47) GSTL31 l(AAR-Haryana)] has held that the PVC floor mats, used for motor vehicles would fall within the ambit of 390410. The applicant has relied on these cases while seeking the advance ruling. Since the competing entries in these two rulings are 3904 and 3918, we will first examine whether the impugned product would fall within the ambit of 3904, as held by AAR, Haryana. 17. The Advance Ruling Authority of Haryana in the case of M/s. Stinzo Automotive (P) Ltd [2021 (47) GSTL 311] (AAR-Haryana)] has classified the PVC floor mats under 390410, on the reasoning that: * Heading 5705 includes other carpets and other textile floor coverings, whether or not made up [such as Mats and matings including Bath Mats, where cotton predominates by weight, of Handloom. Cotton Rugs of handloom]; that heading 5705 talks about carpets and textile floor covering where cotton predominates by weight or made of handlooms or cotton rugs of handloom; * no sub-heading of Chapter 5 7 covers carpets made of PVC yarn; * Chapter 39 covers pl....
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....rms 3914 Ion-Exchangers Based On Polymers Of Headings 3901 To 3913. In Primary Forms 3915 II. -Waste, Parings & Scrap; Semi-Manufactures; Articles As is evident, for the goods to fall within the ambit of 3901 to 3914, it has to be in Primary form. The goods viz waste, parings, & scrap, semi manufactured and articles would appropriately have to be classified from CTH 3915 onwards. Hence, on this count also, the goods manufactured by the applicant ie PVC floor mat for motor vehicles would not fall within the ambit of CTH 3904. Hence, the applicants alternate reliance on the case of M/s. Stinzo Automotives P Ltd [2021 (47) GSTL 311 (AAR-Haryana)], is not legally tenable. 20. We find that the applicant in para (5), page 7, of his submission has primarily contended that his PVC floor mats for motor vehicles manufactured and supplied by them is classifiable under CTH 3918. The applicant has further relied upon the judgement of Uni Products India Ltd. [2020 (116) taxmann.com 401 (SC)] in his submission. Thus, we now need to examine whether the product would fall under CTH 3918, 5703 or 8708. 21. CTH 3918 covers within its ambit, floor coverings of plastics, whether or not self adhe....
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....be excluded by the provisions of the notes to Section XVII. As is evident from note 2 of section XVII of the HSN, PVC floor mats for four wheel motor vehicles does not fall in the exclusion. * As per section note 2 of section XVII of HSN, parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39) are excluded. Note 2 of section XV of Customs Tariff Act, 1975, states as follows viz: 2. Throughout this Schedule, the expression "parts of general use " means : (a) articles of headings 7307, 7312. 7315, 7317 or 7318 and similar articles of other base metal; (b) springs and leaves for springs, of base metal, other than clock or watch springs (heading 9114); and (c) articles of headings 8301. 8302, 8308, 8310 and frames and mirrors, of base metal, of heading 8306. In Chapters 73 to 76 and 78 to 82 (but not in heading 7315) references to parts of goods do not include references to parts of general use as defined above. Subject to the preceding paragraph and to Note 1 to Chapter 83, the articles of Chapter 82 or 83 are excluded from Chapters 72 to 76 and 78 to 81. Now headings mentioned supra is in respect o....
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....cles [cars] supplied by the applicant, is principally for use in motor vehicles. * the parts and accessories of chapter 87 include floor mats (other than of textile material or unhardened vulcanized rubber), etc.. It is not the applicant's case that his product falls within this exception mentioned in the HSN. * the PVC floor mats used in motor vehicles supplied by the applicant even otherwise, would get excluded from section XI, by virtue of section note 1(h). This view is in-fact supported by the applicant in his application made before us, wherein he has stated that according to him, the floor mats for four wheel vehicles supplied by him would fall within 3918. 26. For the aforementioned reasons, we find that the applicant's claim that his supply would fall under CTH 3918 by relying on the rulings of M/s. Soft Turf [2021(55 GSTL 52 (AAAR)] & National Plastic Industries Ltd [2018 (16) GSTL 287 (AAAR Maha)], is not legally tenable. 27. In his additional submission, we find that the applicant has also relied upon the case of Uni Products India Ltd. [2020 (116) taxmann.com 401 (SC)]. The relevant paragraph, is reproduced below for ease of reference: These two appeals....