TaxTMI 
TaxTMI 
2024 (9) TMI 1204
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....sed as textile article in normal trade parlance; • that the content of the said product 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....
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....ST, Surat Commissionerate, vide letter No. TECHN/4/2023-TECH-O/o COMMR-CGST-SURAT submitted its comments as follows: As the product is declared by the applicant as non-woven fabric coated, laminated, impregnated with plastics, the product cannot fall under Section XI of the First Schedule to the Customs Tariff Act, 1975 in terms of Note 1(h) of Section-XI of the First 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....
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.... Silk GENERAL The General Explanatory Note to Section XI should be taken into account in reading the Explanatory Notes to this Chapter. For the purposes of this Chapter the term "silk" covers not only the fibrous mailer secreted by the Bombyx mart (mulberry reeding silk-worm), but also the products of the secretion of similar insects (e.g., Bombyx textor) known as wild silk Among the wild varieties, so named because the producing worm has only very rarely been domesticated, The most important is tussah 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/m^2: 5603 12 00 - - Weighing m....
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....r through heated embossing calenders (point bonding) Binding fibres can also be used for thermal bonding. (c) Mechanical bonding, in which webs are strengthened by the physical entanglement of the constituent fibres. This may be achieved oy means of high-pressure air or water jets It may also be achieved by needling but not by stitch-bonding. However, needled products regarded as nonwovens are restricted to - filament based webs: - staple fibre webs where the needling is complementary to other types of bonding These various bonding processes may also frequently be combined III. Finishing Nonwovens may be dyed, printed, impregnated, coated, covered or laminated Those covered 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 fibr....
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.... for sound insulation, for filtration or separation in road building or other civil engineering works, substrates lor manufacturing bituminous roofing fabrics; primary or secondary backing for tufted carpets, etc., handkerchiefs, bed linen, table linen, etc. The heading also excludes (a) Bandages, medicated or put up for retail sale (heading 30.05) (b) Nonwovens, impregnated, coaled or covered with substances or preparations (eg., perfumes or cosmetics (Chapter 33). soaps or detergents (heading 34.01), polishes. creams or similar preparations (heading 34.05), fabric softeners (heading 38.09)) where the textile material is present merely as a carrying medium. (c) Needleloom felts (heading 56.02) (d) Carpets and other door coverings of nonwowens of Chapter 57. (e) Tufted 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....
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.... This heading covers articles, not elsewhere specified or included, of plastics (as defined in Note 1 to the Chapter) or of other materials of headings 39.01 to 39.14 They include : (1) Articles of apparel and clothing accessories (other than toys) made by sewing or scaling sheets of plastics, e.g., aprons. Belts, babies' bibs, raincoats, dress-shields, etc. Detachable plastic hoods remain classified in this heading if presented with the plastic raincoats to which they belong (2) Fittings for furniture, coachwork or the like. (3) Statuettes and other ornamental articles. (4) Dust-sheets, protective bags, awnings, file-covers, document jackets, book covers and reading jackets, and similar protective goods made by sewing or glueing together sheets of plastics. (5) Paperweights, paper-knives, blotting-pads, pen-rests, bookmarks, etc. (6) Screws, bolts, washers and similar fittings of general use (7) Transmission, conveyor or elevator belts, endless, or cut to length and joined end to end, or fitted with fasteners. Transmission, conveyor or elevator belts or belting of any kind, presented wuh (be machines....
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.... manufacturing process, the section notes, chapter notes, etc, leads us to a conclusion that the nonwoven coated fabrics-coated, laminated or impregnated with PVC, will not fall under chapter 56 owing to the below mentioned reasons viz • note 1 of section XI states that woven, knitted or crocheted fabrics, felt of non-wovens, impregnated, coated, covered or laminated with plastics, or articles thereof, are not covered under Section XI; that chapters 50 to 63, fall within section XI; • chapter note 3 of chapter 56 of the Customs Tariff Act, 1975, states that headings 5602 & 5603, do not cover, felt impregnated, coated, covered or laminated with plastics or rubber, containing 50% or less by weight of textile material or felt completely embedded in plastics. As is already mentioned in paragraph 10 above, the content of nonwoven, in the product is only 40 GSM out of total 240 GSM, thus falling below the benchmark of 50%, a requirement for the product to be classified under tariff item 5603; • the HSN notes of chapter 56, under the title 'III Finishing' states that nonwoven covered on one or both surface with textile fabric or with sheets of any ot....
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....etail that is mentioned in the application, we are constrained to limit our ruling to the above products only. 16. We find that resort has to be taken to General Rules of Interpretation, the relevant portion of which is reproduced below for ease of reference viz 3. When by application of Rule 2 (b) or for any other reason, goods are. prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made lip of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted of the material or c....