TaxTMI 
TaxTMI 
TaxTMI 
2024 (9) TMI 1204
X X X X Extracts X X X X
X X X X Extracts X X X X
....duct is as under : nonwoven fabrics : 40 GSM, adhesive coat: 80 GSM, PVC sheet: 120 GSM, Total 240 GSM. * that according to applicant this product would fall under HSN 56031400-Nonwovens, whether or not impregnated, coated, covered or laminated (weighing more than 150 g/m2) & that the appropriate rate of GST is 12%. 3. The applicant, thereafter, vide email dated 14.8.2024, submitted a detailed manufacturing process for nonwoven fabrics as under: * that nonwoven fabric is manufactured from PVC films, adhesive gum and nonwoven in their factory; * that manufactured film is ready for further process called lamination/thermoforming; * that cellular leather cloth/thermoforming is used widely for auto tops[canopy], sports shoe upper by laminating a thin PVC film with another layer of calendered sheeting containing blowing agent with textile backing; that this combination can be expanded in a separate stenter/foaming oven; * a drum heated to about 180° C is driven & provided with a rubber coloured pressure roller to press the layers together & eliminate trapped air; * the laminated combination is made to travel inside the heated chambers where the blowing agent is activa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....irst Schedule to the Customs Tariff Act, 1975, which is reproduced below: - "1. This Section does not cover: (h) woven, knitted or crocheted fabrics, felt or nonwovens, impregnated, coated, covered or laminated with plastics, or articles thereof, of Chapter 39;" Therefore the product cannot be classified under the Chapters 50 or 56 but may be classifiable under Chapter 39 of the First Schedule to the Customs Tariff Act, 1975, particularly under the heading 3921, which attracts GST at the rate of 18%. Discussion and findings 7. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 8. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made during the course of personal hearing we have also considered the issue involved the relevant facts & the applicant's submission/interpretation of law in respect of question on which the advance ruling is sou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ussah silk obtained from a silk-worm that feeds on oak. Spider silk and marine or byssus silk (the filaments by which certain shellfish of the Pinna family cling to rocks) are also classified in this Chapter. Generally speaking, this Chapter covers silk, including mixed textile materials classified as silk, at it-various stages of manufacture, from the raw material to the woven fabric. It also includes silk worm gut. * HSN NOTES OF CHAPTER 56 5603 NONWOVENS, WHETHER OR NOT IMPREGNATED, COATED, COVERED OR LAMINATED - Of man-made filaments : 5603 11 - - Weighing not more than 25g/m2: 5603 12 00 - - Weighing more than 25 g/m2 but not more than 70 g/m2 5603 13 00 -- Weighing more than 70 g/m2 but not more than 150 g/m2 5603 14 00 -- Weighing more than 150 g/m2 - Other : 5603 91 - - Weighing not more than 25 g/m2 5603 92 - - Weighing more than 25 g/m2 but not more than 70 g/m2 5603 93 - - Weighing more than 70g/ m2 but not more than 150 g/m2: 5603 94 - - Weighing more than 150 g/m2: A nonwoven is a sheet or web of predominantly textile fibres oriented directionally or randomly and bonded. These fibres may be of natural or man-made....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vered on one or both surfaces (by gumming, sewing or by any other process) with textile fabric or with sheets of any other material are classified in this heading only if they derive their essential character from the non-woven The heading includes, inter alia, adhesive tape consisting of a nonwoven coated with an adhesive of rubber, of plastics or of a mixture of these materials. The heading also covers certain "roofing felts" in which the textile fibres are agglomerated with tar or similar substances, and certain products known as "bitumen felts" obtained in the same way but incorporating a small quantity of cork fragments. However, the heading does not cover the following products which fall in Chapter 39 or 40 (a) Nonwovens, either completely embedded in plastics or rubber, or entirely coated or covered on both sides with such materials, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (b) Plates, sheets or strip of cellular plastics or cellular rubber combined with nonwovens, where the textile material is present merely for reinforcing purpose (see the General Explanatory Note to Chapt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted nonwovens of heading 58.02. (f) Bolducs (heading 58-06). (g) Embroidered nonwovens in the piece, in strip or in motifs (heading 58.10) (h) Quilled textile products in the piece, composed of one or more layers of textile materials assembled by stiching or otherwise with padding material of nonwovens, other than embroidery of heading 58 10 (heading 58.11). (i) Nonwovens for technical uses, of heading 59.11 (k) Nonwovens covered with abrasive powder or gram (heading 68.05) or with agglomerated or recon-diluted mica (heading 68.14) (l) Melal foil on a hacking of nonwovens (generally Section XIV or XV) * Classification of product viz. Poly Propylene Non-Woven bag is already covered in TRU Circular No. 80/54/2018-GST dated 31.12.2018. For reference, relevant portion of above said circular is reproduced below: Subject: Clarification regarding GST rates & classification (goods)-reg. 7. Applicability of GST on supply of Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP: 7.1 Representations have been received seeking the classification and GST rates on Polypropylene Woven and Non-Woven Bags and Polypropylene Woven and Non-Woven....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th and joined end to end, or fitted with fasteners. Transmission, conveyor or elevator belts or belting of any kind, presented wuh (be machines or apparatus for which they are designed, whether or nut actually mounted, are classified with that machine or apparatus (e.g , Section XVI) In addition, this heading does not cover transmission or conveyor belts or belting, of textile material, impregnated, coated, covered or laminated with plastics (Section XI, e.g .heading 59.10). (8) Ion-exchange columns filled with polymers of heading 39.14 (9) Plastic containers filled with carboxymclhylcellulose (used as ice-bags). (10) Tool boxes or cases, not specially shaped or internally filled to contain particular tools with or without their accessories (see the Explanatory Note to heading 42.02). (11) Pacifiers (or "baby's dummies"); ice-bags; douche bags, enema bags, and fittings therefor; invalid and similar nursing cushions; pessaries; sheath contraceptives (prophylactics); bulbs for syringes. (12) Various other articles such as fasteners for handbags, comers for suit-cases, suspension hooks, protective cups and glides for placing under furniture, handles (of tools, knives, fork....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ith textile fabric or with sheets of any other material are classified in this heading only if they derive their essential character from the nonwoven. The constituents of the product viz [nonwoven coated fabrics-coated, laminated or impregnated with PVC] clearly show that nonwoven is only 16%, thus the goods cannot be stated to be deriving their essential character from nonwoven. * The HSN notes further state that plates, sheets, strip of cellular plastic combined with nonwoven where the textile material is present merely for reinforcing purpose will not fall within tariff item. The applicant has stated that in their product, the nonwoven is used in the bottom while PVC film is used on the top; that the nonwoven fabrics helps to get proper stitching on the goods; that without using nonwoven it is not possible to have stitching on the goods; that PVC will get spoilt, if stitching is directly on PVC films; that PVC films are used only for decorative purpose while nonwoven is used as a base and foundation of the nonwoven fabrics. 13. The second contention/question of the applicant is that if the product non-woven coated fabrics-coated, laminated or impregnated with PVC, does not f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....em their essential character, insofar as this criterion is applicable. (c) When goods cannot be classified by reference to 3 (a) or 3 (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. By following rule 3(b), reproduced supra, we find that since the product of the applicant is a mixture of various constituents as is already mentioned, the product is to be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. It is already stated that the major constituent is PVC sheet which is 120 GSM out of the total 240 GSM. Therefore, the goods of the applicant viz nonwoven coated fabrics-coated, laminated or impregnated with PVC would fall under chapter 39. 17. As far as bags is concerned, we find that CBIC, vide its circular No. 80/54/2018-GST dated 31.12.2018 has provided clarification regarding GST rates and clarification in respect of nonwoven bags, wherein it is clarified that Non-Woven Bags laminated with BOPP would be classified as plastic bags under tariff item 3923 and would attract 18% GST. Our view is also s....