TaxTMI 
TaxTMI 
2023 (3) TMI 787
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....nown as Heel pad. 4. According to the applicant, the details of the 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;....
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....assification of the floor mats made up of PVC manufactured by him and used in motor cars. 13. Under the GST regime, classification of goods shall be done using the General Rules of interpretation of the first schedule of the Customs Tariff Act, 1975 including the section & chapter notes and the General Explanatory 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 polye....
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....sation or at some subsequent stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticiser) by moulding, casting, extruding, rolling or other process into shapes which are retained on the removal of the external influence. Throughout this Schedule any reference to "plastics" also includes vulcanised fibre. The expression, however, does not apply to materials regarded as textile materials of Section XL • Note 2 to chapter 39, 'Plastics and 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 â....
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.... 8708 95 00 -- Safety airbags with inflater system: parts thereof 8708 99 00 -- Other • Note 2 of Section XVII of the HSN states as follows : 2. The expressions "parts" and "parts and accessories" do not apply to the following articles, whether or not they are identifiable as for the goods of this Section:- (a) joints, washers or the like of any material (classified according to their constituent material or in heading 8484) or other articles of vulcanised rubber other than hard rubber (heading 4016); (b) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39): (c) articles of Chapter 82 (tools); (d) articles of heading 8306; (e) machines and 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 (Chap....
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....s; running-boards; wings (fenders): mudguards: dashboards; radiator cowlings; number-plate brackets; bumpers and over-riders; steering column brackets; exterior luggage racks; visors; nonelectric heating and defrosting appliances which use the heat produced by the engine of the vehicle; safety seat belts designed to be permanently fixed into motor vehicles for the protection of persons; floor mats (other than of textile material or unhardened vulcanized rubber), etc. Assemblies (including unit construction chassis-bodies) not yet having the character of incomplete bodies, e.g., not yet fitted with doors, wings (fenders), bonnets (hoods); and rear compartment covers, etc., are classified in this heading and not in heading 87.07. 16. We find that in the citations relied upon by the applicant, in the case M/s. Soft Turf [2021 (55 GSTL 52 (AAAR)] & National Plastic Industries Ltd [2018 (16) GSTL 287(AAAR Maha)], the Appellate Advance Ruling authority [for short 'AAAR' has classified 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 hel....
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.... Polymers of Styrene. In Primary Forms 3904 Polymers of Vinyl Chloride or of Other Halogenated Olefins, In Primary Forms 3905 Polymers of Vinyl Acetate or Of Other Vinyl Esters, In Primary Forms; Other Vinyl Polymers In Primary Forms 3906 Acrylic Polymers In Primary Forms 3907 Polyacetals. Other Polyethers & Epoxide Resins, In Primary Forms; Polycarbonates, Alkyd Resins, Polyallylesters & Other Polyesters, In Primary Forms 3908 Polyamides In Primary Forms 3909 Amino-Resins, Phenolic Resins And Polyurethanes. In Primary Forms 3910 Silicones In Primary Forms 3911 Petroleum Resins. Coumarone-Indene Resins, Polyterpenes, Polysulphides, Polysulphones And Other Products Specified In Note 3 To This Chapter, Not Elsewhere Specified Or Included, In Primary Forms 3912 Cellulose And Its Chemical Derivatives, Not Elsewhere Specified Or Included, In Primary Forms 3913 Natural Polymers (For Example, Alginic Acid) And Modified Natural Polymers (For Example, Hardened Proteins. Chemical Derivatives Of Natural Rubber), Not Elsewhere Specified Or Included, In Primary Forms 3914 Ion-Exchangers Based On Polymers Of Headings 3901 To 39....
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....gredients present in the applicants impugned product, the same would get excluded from section XI, by virtue of section note 1(h), supra. 24. Thus the question now which remains to be answered is whether the goods supplied by the applicant would merit classification under CTH 3918 or 8708. The concerned tariff item and its description is mentioned supra. 25. Going by the tariff heading, section notes, chapter notes, HSN notes, which we have already reproduced above, we are of the opinion that the goods merit classification under CTH 8708 owing to the following reasons viz,- • the HSN note under 8708 covers parts and accessories of the motor vehicles falling under 8701 to 8705 subject to two conditions. The first condition being that the goods in question must be identifiable as being suitable for use solely or principally with the vehicles mentioned from 87.01 to 87.05. The floor mats for four wheel vehicles [cars] made of poly vinyl chloride [PVC], supplied by the applicant, is suitable for use principally with the motor vehicles for which it is being manufactured, it being a tailor made product. The second condition is that these goods must not be excluded by t....
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.... to length or equipped with end fittings, other than brake cables, accelerator cables and similar cables suitable for use in motor vehicles of Chapter 87), nails, bolls, nuts, washers, cotters and cotterpins, springs (including leaf springs for vehicles (such goods of base metals fall in Chapters 73 to 76 and 78 to 81, and similar goods of plastics fall in Chapter 39), and locks, fittings or mountings for vehicle coachwork (e.g., made up ornamental beading strips, hinges, door handles, grip bars, foot rests, window opening mechanisms), number plates, nationality plates, etc. (such goods of base metals fall in Chapter 83, and similar goods of plastics fall in Chapter 39). Again it is evident that the floor mats for four wheel vehicles [cars] made of poly vinyl chloride [PVC] supplied by the applicant does not fall within the exclusion. • under section note 3 of HSN, parts and accessories which are not suitable for use solely or principally with the articles of Chapters 86 to 88 are excluded. Further, as per Note 3 of the HSN, when a part or accessory can fall in more other one sections as well as in section XVII, the final classification is determined by its sole or ....