TaxTMI 
TaxTMI 
2025 (12) TMI 628
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.... • Rain jackets • Seasonable coats, etc. 3. The applicant has submitted the detailed manufacturing process of PVC raincoats as under:- (a) Procuring raw materials The first step involves sourcing the necessary raw materials, including PVC rolls or sheets, plastic buttons, zippers, draw cords, stoppers, and other accessories, which are procured from local suppliers or are imported. (b) Panel cutting process The PVC sheets are cut into various components of the raincoat, such as sleeves, pockets, and the front and back panels. Each part is precisely cut into desired shapes and sizes to ensure consistency and proper assembly. (c) Printing This involves printing designs, logos on the raincoat's surface as per the product specifications. This adds aesthetic value and brand identity to the final product. (d) Welding (Heat Sealing) Since raincoats must be non-porous, traditional stitching methods using needles and threads are unsuitable. Instead, the components are joined using heat welding or chemical bonding. This ensures a durable and waterproof seal for buttons, zippers and other elements. ....
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....oned in both Chapter 39 as well as in Chapter 62 but the rule of specific over general shall prevail in the instant case. Even in terms of Rule 3(a) of the General Rules of Interpretation of the Customs Tariff Act, 1975, the heading which provides the most specific description shall be preferred to the heading providing a more general description. In support, reference is invited to the Hon'ble Apex Court Judgement in the case of Commercial Tax Officer Vs Binani Cement Limited in Civil Appeal No. 336 of 2003. Thus, in view of the above rule of interpretation, Entry No. 223 (Schedule-I) and Entry No 170 (Schedule-II) of Notification No. 1/2017-CT(R) dtd. 28.06.2017 provided more specific description over Entry No. 111 of Schedule III, with respect to the applicant's product i.e. Raincoats. (iv) Attention is also invited to the Madhya Pradesh Advance Ruling in the case of New ZEAL Fashion Wear (P)Ltd. (Order No. 5/2024 dtd. 10.07.2024), wherein it was held that PVC raincoat falls under Chapter 6201 4010 & 6202 4010 as the case may be, depending upon whether these are Men's/Boy's or Women's/Girl's raincoat and attract GST rate of 5%. (v) Attention is also invited to ....
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.... PVC. The applicant has relied upon the Supreme Court's decision in the case of Porritts & Spencer (Asia) Ltd-1978 (9) TMI 72, to submit that any woven fabrics were 'textiles; irrespective of the materials used, technique of weaving adopted and the end-use of the product. Further, it was held by the SC that plastic is a well-known textile material and various varieties of yarns and fabrics are produced out of plastic materials, namely terelene, polyester, nylon, acrylic, texturised yarns, silicon yarns etc. (ix) The raincoats manufactured and supplied by the Applicant are thus made of Polyster (PVC) and is classified as a man-made fibre or other textile material. Thus, on conjoint reading of the above provisions and the characteristics of the product, it is safe to infer that the applicant's product falls out of Chapter 39 and can be considered under Chapter 62 of the Tariff. (x) The applicant intends to manufacture and sell its PVC raincoats for a consideration ranging from Rs. 450-Rs. 1000/- and thus the same will be leviable to GST @ 5%. 7. Personal hearing was granted on 16.10.2025 wherein Shri Meet Desai, CA and Shri Pradeepkumar G Trivedi, Proprietor appe....
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....iable to pay GST @ 18%, whereas if it falls under Chapter 62, Sr. No. 389 of Schedule-I or Sr. No.198 of Schedule-II of the Notification ibid, depending upon the sale value of the goods, would be applicable, and the applicant would be liable to pay GST @ 5 % or 18% respectively. 12. The applicant's first reasoning for their goods in question i.e the PVC raincoats, to fall under Chapter 62 and not under Chapter 39 is that there is a specific mention of rain coat in HSN 6201 and 6202, whereas the same is absent in Chapter 39. Thus, a specific description shall be preferred to a heading providing a more general description. We find that though the Chapter 39 does not specifically mention the term raincoat but the explanatory notes to HSN 3926 specifically mentions that the said heading covers 'raincoats'. The same is reproduced below:- "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 sealing sheets of plastics, e.g., aprons, belts, babies' ....
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....ity has not given any concrete reasoning as to how the PVC raincoat is a textile garment. Further, the Authority's view has also been influenced by the fact that there is specific mention of rain coat in HSN 6201 and 6202. We have already shown in the preceding paras that even for Chapter 39, the explanatory notes have held that they include rain coats. 16. The second ruling of ZEAL Fashion Wear (P) Ltd. has been given by the Madhya Pradesh Advance Ruling Authority. We find that even this Authority's view has been influenced by the fact that there is specific mention of rain coat in HSN 6201 and 6202 and not in HSN 392620. Here also, the Authority has held that Chapter 39 does not cover articles that are covered under Section XI. The Authority has also relied upon the judgement of the Supreme Court in the case of Porritts & Spencer (Asia) Ltd., wherein it has been held that any woven fabrics were textile irrespective of the materials used, technique of weaving adopted and the end use of the product; that plastic is a well known textile material and various varieties of the yarn and fabrics are produced out of plastic materials, namely, terelene, polyester, nylon, acrylic, textur....
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.... (1) of this chapter further speaks 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). Thus, to cover under this chapter, a PVC raincoat must fall under the category of a made-up article of textile fabric. 4.9 Admittedly the item manufactured by the applicant is a non-woven product as the applicant himself has submitted that it employs a fusion method, wherein the parts are thermally or chemically bonded to form a seamless, non-woven product. In order to analyse whether PVC sheet can be regarded as textile material thereby to qualify to be a woven fabric, we have explored the manufacturing process of PVC sheet in the internet and from the website of petronthermoplast.com, we find such process as follows:- Polyvinyl Chloride, commonly known as PVC, is a synthetic polymer derived from the vinyl chloride monomer. It is produced through a polymerization process that involves combining vinyl chloride molecules to form long chains, resulting in the creation of PVC resin - the primary raw material for PVC sheet production. Raw Materials for PVC Sheet Pro....
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....n process can be either calendaring or flat-die extrusion, depending on the type of sheet being manufactured. 5. Cooling and Sizing After the extrusion process, the freshly formed PVC sheet undergoes cooling to solidify its shape and size. Proper cooling is essential to prevent warping or deformities in the final product. The sheet is then trimmed and cut to the required dimensions. 6. Embossing (Optional) In some cases, the PVC sheet may undergo an embossing process to add textures or patterns to its surface. This is achieved through the use of embossing rollers, which press the desired design onto the sheet during the cooling process. 7. Surface Treatment (Optional) For specific applications, the PVC sheet may undergo surface treatment to enhance its properties. Surface treatments can include corona treatment to improve printability or the application of coatings to increase chemical resistance. 4.10 In view of the aforesaid manufacturing process, we are of the opinion that PVC sheet cannot be regarded as a woven fabric. Even in common parlance, the item PVC sheet is not considered as textile materials. We are therefo....