TaxTMI 
TaxTMI 
2025 (1) TMI 1717
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....lyester 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 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 ports of Chennai and JNCH, Nhava Sheva. 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. Fancy Ribbon House (hereinafter referred to as the 'company' or 'applicant') is having an IEC No AAPPB6861P and registered in the State of Tamil Nadu vide GST registration no 33AAPPB6861P1Z6. The applicant's registered office is located at New No.94/2, Old No.41/2, Narayana Mudali Street, Sowcarpet, Chennai, Tamil Nadu, 600001.The applicant is engaged, inter-alia, in the ....
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.... 30 183 37 Double Side Slit Polyester Satin Roll-Khaki 32 183 38 Double Side Slit Polyester Satin Roll 38 183 39 Double Side Slit Polyester Satin Roll 40 183 40 Double Side Slit Polyester Satin Roll 45 183 41 Single Side Woven Edge Polyester Satin Roll 20 200 42 Single Side Woven Edge Polyester Satin 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 Wo....
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....s are covered in chapter VB of the Customs Act, 1962, The definition of term 'advance ruling' has been provided in section 28E(b) of the said Act. The said definition is reproduced below: "(b) "advance ruling" means a written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation or exportation: Hence as per above reproduced definition, advance ruling means decision provided in respect of any goods prior 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 Q....
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.... 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 material (including knitted). This category Includes badges, emblems, "flashes", etc., of a kind normally sewn to the outer part of wearing apparel (sporting, military, local or national badges, etc., badges bearing the names of youth associations, sailors' cap badges with the name 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 T....
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....fiable under heading CTH 58.07, I do not find any grounds to disagree with the High Court decision in case of M/s Bijay Kumar Poddar vs Union of India 2000 (126) ELT 393 (Calcutta) on the issue of classification in the instant case." 2.8.5 In view of above, the rolls made of polyester, Taffeta, Satin etc proposed to be imported by the applicant, meant for printing wash care instructions & fabric contents, shall be classifiable under Chapter heading 5807 1090. Goods to be classified as understood in trade and common parlance: 2.9 The term 'labels' is not defined in the Customs Tariff. 2.9.1 It is submitted that the Hon. Bombay High Court in the case of M/s. Pharm Aromatic Chemicals reported in 1997(95) E.L.T.203 (Bom.) in para 14 has observed as follows: 14. The principles that emerge from the above interpretation can be summed up thus: Where no definition is provided in the statute for ascertaining the correct meaning of a fiscal entry, the same should be construed as understood in common parlance or trade or commercial parlance. Such words must be understood in their popular sense. The strict or technical meaning or the dictionary meaning of the entry ....
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....e same cannot be taxed under the residuary entry and what is important is to apply the Trade Parlance Test or Common Parlance Test and not to apply the hair-splitting exercise to apply the technical terms. 2.9.5 In view of the above judgements, it is submitted that in the present case as well, labels are not specifically defined in the notification. The correct meaning of the same should be construed as understood in common parlance or trade or commercial parlance and that hair- splitting exercise to apply the technical terms or the dictionary meaning of the entry is not to be resorted to. Products are known as 'labels' in trade parlance: 2.10 In the present case, the applicant submits that the products proposed to be imported are treated as labels in the trade. It can be observed from the name/trade name of the supplier i.e. hengxin-label. The website link of the supplier providing end use of the products here - https://www.hengxin-label.com 2.10.1 Further, the applicant has made a local procurement of the Rolls within India and the same is supplied by the domestic supplier under the CTH 58071090. 2.10.2 In view of the above, it is submitted that it is well ....
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....ed 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. State of Rajasthan & Ors. (1980) 3 SCR 1109 = 1980 (6) E.L.T. 383 (S.C.) which was a case under the Sales Tax law: "In determining the meaning or connotation of words and expression describing an article or commodity the turnover of which is taxed in a sales tax enactment, if there is one principal fairly well settled it is that the words or expressions must be construed in the sense in which they are understood In the trade, by the dealer and the consumer. It is they who are concerned with it, and it is the sense in which they understand it that constitutes the definitive index of the legislative intention when the statute was enacted." That was also the view expressed in Geep Flashlight Industries Ltd. v. Union of India and Others 1985 (22) E.L.T. 3. Where the goods are not marketable that principle of construction is not attracted. Indian Aluminium Cables Ltd. v.....
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....s of the rolls as detailed below: a) Nylon Taffeta Roll - 19mm size (Fantasy Gold Core) b) Single Side slit polyester satin Roll - 32mm (Red Horse Core) c) Double side slit Polyester Satin Roll - 25mm (supreme core) d) Single side woven edge polyester satin roll - 12mm (Supreme core) e) Double side woven edge polyester satin Roll-15mm (Supreme core) 2.12.3 It is apparent from the samples submitted that the side coated/processed 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' or 'similar articles' as the Chapter Tariff Heading 5807 1090 specifically covers all the products used as labels or similar articles. 2.12.6 It is submitted that the products proposed to be imported by the applicant do not have an alternate use other than as labels. 2.12.7 The Hon'ble Calcutta High Court in the case of M/s Bi....
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....l 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 and hence, it does not come with marking. 2.13.8 In case the Rolls are given a specific marking for cutting then the same will have a limited application and can be used only by a particular customer/ industry. However, the applicant will import the Rolls and then identify the customer, and hence, the Rolls cannot come with a specific cut marking.....
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....oated for printing, the same cannot be used for other purposes. Hence, based on the nature of fabric, the goods are classifiable under CTIs 58071010, 58071020 and 58071090. The explanatory notes to the chapter heading 5807 are reproduced below- 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, or 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 material (including knitted). This category includes badges, emblems. "flashes, etc., of kind normally sewn to the outer part of wearing apparel (s....
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....lar products under CTI 58071090. They also relied upon the case law/ advance rulings No. CAAR/MUM/ARC/01/2023 dated 17.11.2023, CAAR/MUM/ARC/05/2024 dated 16.01.2024 and Calcutta High Court in the matter M/s Bijay Kumar Poddar Vs UOI 2000(126) ELT/393/Calcutta. Nobody appeared from the Jurisdictional Commissionerate to represent the case. 5. I have taken into consideration all the materials placed on record in respect of the products intended to be imported including the submissions made by the applicant during the course of personal hearing. I have gone through the response received from the Chennai Customs House. I therefore proceed to decide the present applications regarding classification of "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 with printable feature more specifically described in....
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....o this Chapter, this heading includes as narrow woven fabrics: (1) Warp and weft fabrics in strips of a width not exceeding 30 cm, provided with selvedge's (flat or tubular) on both edges. These articles are produced on special ribbon looms several ribbons often being produced simultaneously; in some cases, the ribbons may be woven with wavy edges on one or both sides. (2) Strips of a width not exceeding 30 cm, cut (or slit) from wider pieces of warp and weft fabric (whether cut (or slit) longitudinally or on the cross) and provided with false selvedge's on both edges, or a normal woven selvedge on one edge and a false selvedge on the other. They may also be created when a fabric is treated before it is cut into strips in a manner that prevents the edges of those strips from unravelling. No demarcation between the narrow fabric and its false selvedge's need be evident in that case. Strips cut (or slit) from fabric but not provided with a selvedge, either real or false, on each edge, are excluded from this heading and classified with ordinary woven fabrics. (3) Seamless tubular warp and weft fabrics, of a width when flattened, not exceeding 30 cm. Fabrics ....
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....es, emblems, "flashes", etc., of a kind normally sewn to the outer part of wearing apparel (Sporting, military, local or national badges, etc., badges bearing the names of youth associations, sailors' cap badges with the name of a ship, etc.). The above articles are classified in this heading only if they 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 articles, 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). 6.4. From the descriptions of the products as seen in Table-A above, I find that the same are of various type having sizes ranging from 10 mm to 305 mm. However, there is only one item in the list of products having width exceeding 300 mm, namely 'Nylon Taffeta Roll - 305 mm'. I also find a pleth....
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....es. Crux of the judgment is narrated in para 25 of the Court order and the same is reproduced supra. Hon'ble High Court has further opined that the CTH 5807 10 provides and covers labels and similar articles. Notwithstanding whether the imported goods came with printing on it or not then also, the Court held that, if it is not label in strict sense then also the material imported can be said similar to label. While delivering the judgment on classification Hon'ble High Court discussed few apex court decisions are as follows: In the case of Atul Glass Industries Ltd. and Others v. Collector of Central Excise and Others - 1986 (25) E.L.T. 473 (S.C.) wherein Hon'ble Supreme Court has observed in para 8 as under: - 8. The test commonly applied to such cases is: How is the product identified by the class or section of people dealing with or using the product? That is a test which is attracted whenever the statute does not contain any definition. ... .... ..... It is generally by its functional character that a product is so identified .... ...... When a consumer buys an article, he buys it because it performs a specific function for him. There is a mental asso....
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....d "similar" in a tariff item, it was stated as follows: ".......The expression "similar" is a significant expression. It does not mean identical but it means corresponding to or resembling to in many respects; somewhat like; or having a general likeness. The statute does not contemplate those goods classed under the words of 'similar description' shall be in all respects the same if it did these words would be unnecessary. These were intended to embrace goods but not identical with those goods .... " I also find that various courts in a plethora of cases have held that HSN explanatory notes have a persuasive effect in deciding the matters of classification. Keeping in view the observation of Apex Court in various decisions referred in forgoing paras as well as the decision of High Court decision in case of M/s Bijay Kumar Poddar vs Union of India, I find that the said products have to be considered as articles similar to labels of textile materials in strips and accordingly are classifiable under heading CTH 58.07. I do not find any grounds to disagree with the High Court decision in case of M/s Bijay Kumar Poddar vs Union of India 2000 (126) ELT 393 (Calcutta) ....