TaxTMI 
TaxTMI 
2025 (12) TMI 1151
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...., Double side woven edge satin roll, Single side slit polyester cotton roll, Recyclable Single side slit polyester satin roll etc. which are available with width ranges from 10 millimeter to 305 Millimeter more specifically described in as under in Table 'A' collectively referred to as 'Products' and the applicable IGST rate under sub-section (7) of Section 3 of the Customs Tariff Act read with Notifications issued on import of said 'products' for imports through the port of Chennai, Tuticorin and Mundra. 2. Applicant has stated as follows in their statement of relevant facts having a bearing on the question(s) raised enclosed with the CAAR-1 application: 2.1 M/s. Shiv Enterprises (hereinafter referred to as the 'applicant') is having an IEC No CKPPB6002G. The applicant's registered office is located at 903, Swapnapur Building, Sector 36, Kharghar.The applicant is engaged, inter-alia, in the business of purchase and sale of products in India. 2.2 The applicant has proposed importing Rolls made of Nylon Taffeta, Polyester Taffeta, Tearaway Taffeta, Iron on fusing Taffeta roll, Single side slit polyester satin roll, double side slit satin ....
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....atin Roll 25 200 43 Single Side Woven Edge Polyester Satin Roll 32 200 44 Single Side Woven Edge Polyester Satin Roll 35 200 45 Single Side Woven Edge Polyester Satin Roll 38 200 46 Double Side Oven Edge Polyester Satin Roll 20 200 47 Double Side Oven Edge Polyester Satin Roll 25 200 48 Double Side Oven Edge Polyester Satin Roll 30 200 49 Double Side Oven Edge Polyester Satin Roll 40 200 50 Double Side Oven Edge Polyester Satin Roll-Black 50 200 51 Slit Poly Cotton Roll 30 200 52 Slit Poly Cotton Roll 32 200 53 Slit Poly Cotton Roll 38 200 54 Recycled Single Side Slit Polyester Satin Roll 40 200 55 Recycled Single Side Slit Polyester Satin Roll 45 200 56 Woven Edge Poly Cotton Roll 20 200 57 Woven Edge Poly Cotton Roll 25 200 58 Woven Edge Poly Cotton Roll 32 200 59 Recycled Woven Edge Polyester Satin Roll 35 200 60 Recycled Woven Edge Polyester Satin Roll 38 200 2.3 As per First Schedule of Customs Tariff Act, 1962, the basic customs duty for goods falling und....
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....rior to its importation or exportation. Therefore, application can be filed in relation to proposed import of goods by the applicant. In the present case, the applicant has proposed to import products and will classify it under HSN code 5807 1090 and pay customs duty as per First Schedule of Customs Tariff Act, 1962 and IGST under entry no. 153 of Schedule II of Notification 1/2017 IGST (Rate) 28 June 2017. The said activity of import will be a continuous activity in future as well. Accordingly, the applicant seeks advance ruling on the classification and applicability of entry & Customs/ IGST notification on the products proposed to be imported by the applicant. 2.7 Question(s) on which Advance Ruling is required: a) Whether the products proposed to be imported can be classified under CTH 5807 1090 of the First Schedule to the Customs Tariff Act, 1975 and leviable to customs duty of 10%? b) If answer to (a) above is negative, what is the classification of the products proposed to be imported? c) Whether the products are covered by entry no. 153 of Schedule II of Notification 1/2017- IGST (Rate) 28 June 20177 d) If answer to (c) above is negat....
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....of a ship, etc.), The above articles are classified in the heading only if the fulfil the following conditions: (1) They must not be embroidery. The inscriptions or motifs on the articles classified here are generally produced by weaving (usually broche work) or by printing. (2) They must be in the piece, in strips (as is usually the case) or in separate units obtained by cutting to size or shape but must not be otherwise made up. This heading does not include labels, badges and similar products, which have been embroidered (heading 58.10) or made up otherwise than by cutting to shape or size (heading 61.17, 62.17, or 63.07). 2.8.3 The products proposed to be imported by the applicant are meant to be used to capture trademark, wash care instructions and other details like country of manufacturing, size, make etc on the products for the reference of the customers. 2.8.4 The applicant relies on the Rulings of The Customs Authority for Advance Ruling Mumbai in the case of M/s Meanlight CAAR/MUM/ARC/05/2024 dated 16-01-2024, M/s Mahaveer Impex CAAR/Mum/ARC/01/2023 dated 17.01.2023, M/s Fancy Ribbon House CAAR/Mum/ARC/192,193/2023 dated 03.01.2025 and....
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....the ratio of the legal pronouncements as discussed above my reply is 'positive' to both the questions(a) & (c) asked by the applicant in para 2.7 (supra) and I rule that the Rolls made of Nylon Taffeta roll, Polyester Taffeta roll, Tearaway Taffeta roll, Iron on fusing Taffeta roll, Single side slit polyester satin roll, double side slit polyester satin roll, Single side woven edge polyester satin roll, Double side woven edge satin roll, Single side slit polyester cotton roll, Recyclable Single side slit polyester satin roll etc. which are available with width ranges from 10 millimetre to 305 millimetre more specifically described in as under in Table 'A' (supra) collectively referred to as 'Products' proposed to be imported by the applicant merit classification as articles similar to label of textile material in strips under CTH 5807 according to their constituting materials and design of the Customs Tariff. Accordingly, the subject goods as reflected in Table 'A' are classifiable at 8-digit level under CTI 5807 1010 (Of cotton), 5807 1020 (Of man-made fibre) & 58071090 (Other) according to their composition and characteristics. The above said '....
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....n the usual course. But once an article is classified and put under a distinct entry, the basis of the classification is not open to question. Technical and scientific tests offer guidance only within limits. Once the articles are in circulation and come to be described and known in common parlance, we then see no difficulty for statutory classification under a particular entry 2.9.3 Further, the Bombay High Court in the case of M/s. Kantilal Nanchand and Co. reported in 2000-(123) E.L.T.311 (Bom.) in para 12 has observed as follows: 12. It is now well-settled by Judicial decisions that when an expression is not defined in a Statute, the meaning to be given to it is the one which it has in popular or trade parlance. 2.9.4 Further, the Karnataka High Court in the case of M/s. Bella Premier Happy Hygiene Care Pvt. Ltd. reported in 2018 (17)G.S.T.L 603 (Kar.) in para 15 has observed as follows: 15. It is well-settled that if a commodity can by some rational understanding or analysis be brought or related to specific entry in the tax laws, the same cannot be taxed under the residuary entry and what is important is to apply the Trade Parlance Test or Common Parla....
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....s paper as that word was used in common parlance. On the same basis the Orissa High Court held in State of Orissa v. Gestetner Duplicators (P) Ltd. (1974) 33 S.T.C. 333 that stencil paper could not be classified as paper for the purposes of the Orissa Sales Tax Act. It is a matter of common experience that the identity of an article is associated with its primary function. It is only logical that it should be so, When a consumer buys an article, he buys it because it performs a specific function for him. There is a mental association in the mind of the consumer between the article and the need it supplies In his life. It is the functional character of the article which identifies it in his mind. In the case of a glass mirror, the consumer recalls primarily the reflective function of the article more than anything else. It is a mirror, an article which reflects Images. It is referred to as a glass mirror only because the word glass is descriptive of the mirror in that glass has been used as a medium for manufacturing the mirror. The basic or fundamental character of the article lies in its being a mirror. It was observed by this Court in Delhi Cloth and General Mills Co. Ltd. v. Sta....
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....e printing. 2.12.1 It is a common practice of the retailers to stitch labels to the products to provide wash care information or details about the supplier/ make etc. The printing of such information is not legible & durable on the plain fabric as in the normal fabric printing is not clear and printing gets smudged. Further, it is important that the information printed should stay for a longer period and even after washing. 2.12.2 Accordingly, the fabric undergoes a process like fabric washing by aqua hydrogen dioxide liquid caustic, Dyeing, fluorescent bleacher, high pressure calendaring or by coating which enable printing on the same. The said processes/ coating on the fabric facilitates printing on the fabric, which is later stitched to the products. It is submitted that the coated/processed side of the Rolls shines compared to the other side. 2.12.4 In view of the above, it is submitted that the Rolls with coating/ processing either on one side or both sides are meant only for the purpose of use as labels to capture product/supplier/wash care Information. 2.12.5 In view of above, the Rolls proposed to be imported by the applicant shall be classified as 'labels&#....
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....s. If it is not label in strict sense. In that case the material imported can be said similar to label. ... 23. Unprinted labels if not accepted giving narrow meaning to it. It should be accepted as similar articles as that of label. Specially, when in the trade world it is known as label. 2.13.3 Further, the CTH 5807 covers all the products used as labels not embroidered and in strips or cut to shape or size. 2.13.4 Thus, basis the principles laid down in by the Hon'ble High Court, the products shall be classified under CTH 58071090. 2.13.5 The Rolls would be imported in standard sizes and can be cut as per the requirement of the customer. 2.13.6 It is submitted that the Rolls comes in a specified size as maintained by the suppliers and commonly accepted in the trade practices. 2.13.7 The applicant shall import the Rolls as per the standard size maintained by the supplier and subsequently sell the same to the Indian customers who will cut to size as per their requirements. Further, the Rolls have multiple Industry applications like garments, toys, automobile and the same are required to be cut in the size as per the product's requirement an....
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....side slit polyester satin roll" with width ranges from 10mm to 305 mm under Customs Tariff Item 5807 1090 of the First Schedule of the Customs Tariff Act, 1975. M/s. Shiv Enterprises has sought advance ruling from CAAR, Mumbai on the question of classification of this item. 3.2 The claims made by the applicant and the ruling sought is devoid of merits and legally untenable on the following grounds: 3.2.1 As per the Indian Customs Tariff, CTH 5807 is applicable for "Labels, badges and similar articles, of textile materials, in the piece, in strips or cut to shape or size, not embroidered ". As per the HSN Explanatory Notes to CTH 5807 :- Subject to the conditions specified below this heading covers : (A) Labels of any textile material (including knitted). These include labels of a kind used for marking wearing apparel, household linen, mattresses, tents, soft toys, or other goods. They are utilitarian labels bearing individual inscriptions or motifs. Such labels include, interalia, commercial labels bearing the trade name or trade mark of the manufacturer or the nature of the constituent textile ("silk ", " viscose rayon", etc.) and labels used by private individua....
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....consisting of warp without weft assembled by means of an adhesive (bolducs)" 3.8 As per the chapter Notes SI. No. 5 to Chapter 58, it has been clarified that :- For the purposes of heading 5806, the expression "narrow woven fabrics" means: (a) woven fabrics of a width not exceeding 30 cm, whether woven as such or cut from wider pieces, provided with selvedges (woven, gummed or otherwise made) on both edges; (b) tubular woven fabrics of a flattened width not exceeding 30 cm; and (c) bias binding with folded edges, of a width when unfolded not exceeding 30 cm. 3.9 As per the characteristics explained by applicant, the width of the goods proposed to be imported is ranged between 10 MM to 30 CM. Also, product is of woven material. As item proposed to be imported is a narrow-woven fabric made of manmade fibers, it is appropriately classifiable under CTI 5806 3200 with applicable duty rates. 3.10 As per General Rule of the Interpretation The classification process is guided by six General Rules for the Interpretation of the Harmonized System. Of particular relevance to this case are: i. GRI 1: Classification is determined according to the term....
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....hich are available with width ranges from 10 millimeter to 305 millimeter with printable feature more specifically described in Table 'A' (supra) collectively referred to as 'Products" on the basis of the information on record as well as the existing legal framework having bearing on the classification of the products in question under the first schedule of the Customs Tariff Act, 1975. 6. Chapter heading 58.06 covers Narrow woven fabrics, other than goods of heading 58.07; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs). 5806 10 00 - Woven pile fabrics (including terry towelling and similar terry fabrics) and chenille fabrics 5806 20 00 - Other woven fabrics, containing by weight 5% or more of elastomeric yarn or rubber thread - Other woven fabrics: 5806 31 -- Of cotton 5806 32 00 -- Of man-made fibres 5806 39 -- Of other textile materials 5806 39 90 --- Other 5806 40 00 - Fabrics consisting of warp without weft assembled by means of an adhesive (bolducs) In order to understand the scope of this tariff heading it is essential to refer to the HSN Explanatory notes to CTH 58....
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....rticles, in strips (heading 58.07 or 58.10) 6.1 Chapter heading 58.07 covers labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered. 5807 10 - Woven 5807 10 10 --- Of cotton 5807 10 20 --- Of man-made fibre 5807 10 90 --- Other 5807 90 - Other As per HSN Explanatory notes to CTH 58.07, subject to the conditions specified below, this heading covers: (A) Labels of any textile material (including knitted). These include labels of a kind used for marking wearing apparel, household linen, mattresses, tents, soft toys, or other goods. They are utilitarian labels bearing individual inscriptions or motifs. Such labels include, inter alia, commercial labels bearing the trade name or trade mark of the manufacturer or the nature of the constituent textile ("silk", "viscose rayon", etc.) and labels used by private individuals (boarding school pupils, soldiers, etc.) to identify their personal property; the latter variety sometimes bear initials or figures or comprise sometimes a framed space to take a hand written inscription. (B) Badges and similar articles of any textile materi....
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....ly excludes: (c) Narrow woven fabrics more specifically covered by other headings, e.g., those having the character of (1) Woven labels, badges and similar articles, in strips (heading 58.07 or 58.10). The HSN Explanatory notes to CTH 58.07, subject to the conditions specified, cover the labels of any textile material. These include labels of a kind used for marking wearing apparel, household linen, mattresses, tents, soft toys, or other goods. Condition that these products must not be embroidery. In the instant case the goods will be imported without printing of labels on them. Applicant has argued that the textiles labels printed or otherwise are classifiable under HSN 5807 10. It is submitted by applicant that the CTH 5807 10 does not require a label to be printed for classification under the heading. Further, there is no such requirement in the chapter and section notes. In support of this argument the applicant has further submitted that the Hon'ble Calcutta High Court in the case of M/s Bijay Kumar Poddar vs Union of India 2000 (126) ELT 393 (Calcutta) has held the plain label strips as 'labels' considering that it is meant for printing and there is no....
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....ling with. This principle should commend to the authorities as it is a good fiscal policy not to put people in doubt or quandary about their tax liability. The common parlance test is an extension of the general principle of interpretation of statutes for deciphering the mind of the law-maker." Applying the same ratio, the product commonly identified by the section of people dealing in or using the same would be known as Label due to its functional character. Further, due to the exclusion clause the said label or similar articles in strip would not be covered under heading 58.06. 6.4 Further, labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered are covered under Heading 58.07. The Apex Court in the case of CCE, Shillong vs. Wood Craft products ltd., 1995 (77) E.L.T. 23 (S.C.) has observed that 'Words & Phrases - "similar" and "same" - The word "similar" is expansive and not restrictive like "same'. It would be not out of place to mention that in similar context in Nat Steel Equipment Private Ltd. vs. Collector of Central Ex., 1988 (34) E.L.T. 8 (S.C.), while considering the meaning of the word "simi....