AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1600
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.... materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean reference to the corresponding similar provisions in the SGST Act, 2017 or vice-versa. 1. This Appeal has been filed by M/s. Dollar Industries Limited (hereinafter referred to as 'the appellant') on 30.04.2025 against Advance Ruling Order No. 26/WBAAR/2024-25 dated 27.02.2025, pronounced by the West Bengal Authority for Advance Ruling (hereinafter referred to as the 'WBAAR'). 2. The appellant is engaged in the manufacture and supply of raincoats primarily composed of polyvinyl chloride (PVC), a synthetic polymer widely recognized for its durability and water-resistant properties, which makes it suitable for protective outerwear. The Appellant sought an advance ruling under section 97 of the West Bengal Goods and Services Tax Act, 20l7 and the Central Goods and Services Tax Act, 2017, (hereinafter collectively referred to as "the GST Act") on the following questions: Question 1: Whether PVC raincoats should be classified as pla....
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.... 7. In this context, the appellant has also filed an application for condonation of delay in filing the instant appeal beyond the stipulated time limit of thirty days from the communication of the relevant ruling as per sub-section (2) of section 100 of the GST Act on grounds that the ruling consisted of complex interpretational disputes and research work which was quite time taking and voluminous in nature. Submission of the Revenue: 8. The Assistant Commissioner, CGST & CX, Park Street Division, representing the revenue side has mailed his submission on 10.06.2025 where he replied that the material in question from which the raincoat is made, i.e., PVC is a synthetic polymer and thus cannot be classified as textile material. He states that textile materials are natural fabrics whereas PVC is synthetic polymer in nature and does not fall under the category of natural fabrics. Thus, raincoats made of PVC may be classified under chapter heading pertaining to plastic i.e. HSN 3926. Accordingly, GST rate may be levied as per HSN 3926. Personal Hearing: 9. During the course of hearing, the Ld. Advocates representing the appellant's authorised representative presented thei....
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....aterial, technique, or intended use. Notably, plastics are acknowledged as a textile material, enabling the production of various yarns and fabrics, including Teflon, polyester, nylon, acrylic, texturised, and silicone yarns. iv. That on the basis of facts and the circumstances of the case, the WBAAR has not distinguished the aforesaid judicial pronouncements and has rather gone into the issue of the manufacturing process and the raw materials used, without giving any edge to the end use and the ultimate article produced. The primary objective of the Act is to raise revenue, resort should not be had, for purpose of classification, to scientific and technical meaning of the terms and expression invested therein, but to their popular meaning that is to say the meaning attached to the terms by those using the product. The burden of proof that a product is classifiable under a particular tariff head is on the revenue and must be discharged by proving that it is so understood by the consumer of product in common parlance. The aforesaid has been held by the Hon'ble Supreme Court in the case of Vico Laboratory reported in 2005 (179) ELT 17 (SC). v. That on the basis of f....
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....ary. viii. That appellant has also submitted that there is a specific entry relating to raincoats in Chapter 62 dealing with 'Overcoats, raincoats, car-coats, capes, cloaks and similar articles' (HSN Code: 62014010), where raincoats have not been segregated from overcoats, car-coats, capes, cloaks and other similar articles. The entry in sl. No. 111 of Schedule III of CGST Rate Notification No. 1/2017-Central Tax (Rate), dated 28-06-2017, read with corresponding WBGST Rate Notification No. 1125-F.T., dated 28-06-2017, being 'Other articles of plastics and articles of other materials of heading 3901 to 3914 (other than plastic bangles, plastic beads and feeding bottles) was substituted through Notification No. 2019-F.T. dated 15.11.2017, thereby removing 'plastic raincoat' from tariff heading 3901. It is a well accepted principle that an explicit entry shall over rule any other entry which demands interpretations. As raincoats are explicitly covered under Chapter 62 and thus under entry in sl. No. 223 of Schedule I of CGST Rate Notification No. 1/2017-Central Tax (Rate), dated 28-06-2017, read with corresponding WBGST Rate Notification No. 1125-F.T., dated 28-06-2017, the s....
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....ns IX-XIII Chapters 44-70 published by the WCO specifies that "The Chapter also excludes (a) Articles of apparel and clothing accessories of heading 39.26, 40.15, 42.03 or 68.12." 16. Also, the said Explanatory Note specifies 'Men's or boy's overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets), wind-cheaters, wind-jackets and similar articles, other than those of heading 62.03' under HSN: 62.01 to be comprised of the following: 6201.20 - Of wool or fine animal hair 6201.30 - Of cotton 6201.40 - Of man-made fibres 6201.90 - Of other textile materials 17. Moreover, HSN Note No. 1 of Chapter 62 of the afore-said document states that: 'This Chapter applies only to made up articles of any textile fabric other than wadding, excluding knitted or crocheted (other than those of heading 6212)'. It is, therefore, clear that Chapter 62 refers to textile materials only. 18. This indicates that any article which will fall under the HSN category of 39.26, i.e. articles of plastic shall not be treated as an article under HSN: 62.01. 19. So, the moot question in this regard is whether the PVC raincoats in question are articles of plast....
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....ritts & Spencer (Asia) Ltd. vs State of Haryana dated 06.09.1978 in which the apex court observed that: "The word 'textiles is derived from the Latin 'texere' which means 'to weave' and it means any woven fabric. When yarn, whether cotton, silk, woollen, rayon, nylon or of any other description as made out of any other material is woven into a fabric, what comes into being is a 'textile' and it is known as such. It may be cotton textile, silk textile, woollen textile, rayon textile, nylon textile or any other hind of textile. The method of weaving adopted may be the warp and woof pattern as is generally the case in most of the textiles, or it may be any other process or technique. There is such phenomenal advance in science and technology...the variety of fabrics manufactured from materials hithereto unknown or unthought of and so many are the new techniques invented for making fabric out of yam that it would be most unwise to confine the weaving process to the warp and weft pattern. Whatever be the mode of weaving employed, woven fabric would be 'textiles'. What is necessary is no more than weaving of yarn and weaving would mean binding or putting together by some pro....