2026 (4) TMI 284

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....der Section 100 of the CGST Act, 2017 and the GGST Act, 2017 by the Deputy Commissioner, CGST, Division-IV, Ahmedabad South Commissionerate (for short - 'appellant-Department') against the Advance Ruling No. GUJ/GAAR/R/2022/46, dated 18.10.2022 passed in the case of M/s. Shree Ambica Geotex Pvt. Ltd. 15, Saijpur Shahwadi Road, Saijpur Gopalpur, Narol, Ahmedabad, Gujarat-382405 (for short-'respondent'). 3. Briefly, the respondent is engaged in the manufacture and sale of textile products and articles like Geomembranes. They also produce intermediate products like Tapes/Strips, but almost the entire quantity is used within the factory for the manufacture of their final products viz. Geomembranes. The respondent is licensed by the Bureau of Indian Standards (BIS) for the manufacture of the Geomembranes in accordance with IS 15351:2015 and IS 7903 :2017. The IS 15351:2015 is for 'Agro Textiles-Laminated HDPE Woven Geomembranes for water proof lining'. 3.1 The Manufacturing process as submitted by the respondent in their application is as under:- (a) The basic raw materials for manufacturing Geomembrane is High Density Polythene Granules (HDPE Granules) and Master Batch c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fore the Advance Ruling Authority, viz. "Whether the product namely, geomembranes merits classification under heading 5911, sub-heading 59111000 or sub heading 59119090 as textile products, coated, covered or laminated with plastic, used for technical purposes?" 5. The Advance Ruling Authority, post admittance & personal hearing, pronounced its impugned ruling vide Advance Ruling No. GUJ/GAAR/R/2022/46, dated 18.10.2022, wherein it was held that: - "Geomembrane merits classification at HSN 5911, tariff item 59111000." 6. The below mentioned findings, led the Advance Ruling Authority to arrive at the aforementioned ruling, viz. (a). that the first product which comes into existence is HDPE tape/strips less than 5mm in width; that note 1(g) of Section XI (TTA) excludes only strips of plastic where the width exceeds 5mm; that plastic strip of width less than 5mm is covered under section XI; that section XI covers chapters 50 to 63 of the HSN. (b). that uncoated fabric is manufactured by weaving the tape/strips by wrap and waft method; (c). that this uncoated fabric is thereafter laminated with LDPE, LLDPE UV on both sides; that this i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sified it under 3926 90 99. (c). The Tribunal in the case of M/s Gujarat Raffia Industries Ltd. Vs CCE Ahmedabad - [2003 (153) ELT 336 (Tri-Del)] has, in the case of similar product i.e. Tarpaulin made out of HDPE/Plastic Strip/yarn, by relying on the High Court judgement of M/s Raj Packwell Ltd., classified it under Heading 39.26 of CETA. (d). The High Court of Rajasthan in the case of M/s Rajasthan Synthetic Industries Ltd. Vs UOI - [2008 (223) ELT 44 (Raj)] has held that the HDPE/PP fabrics and HDPE/Woven sacks are appropriately classified under Chapter 39. (e). The judgement of the Supreme Court in the case of Porrits & Spener, relied upon by the advance ruling authority, has been distinguished by the Tribunal in M/s Gujarat Raffia Industries by holding that the Supreme Court was not considering whether fabric made out of HDPE Strips/yarn would be covered by the term 'textile and textile articles' as mentioned in Section XI of the Schedule to the Central Excise Tariff Act. (f). In view of the above, it is contended that Geomembranes manufactured from HDPE strips is rightly classifiable under HSN 3926 and not under HSN 5911, as held by the adv....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....duced upon subjecting textile fabrics to further operations or processes. (g). The HSN explanatory notes to heading 5911 in Note A(1) gives an example that the term 'any other material' used for lamination can be a material like plastics. Therefore, the HSN explanatory notes read with the text of heading make it clear that textiles like Geomembranes, which are laminated with plastic, would also be included in heading 5911. 9. Personal hearing in the matter was held on 2101.2026, wherein Shri Balchandra Pillai, Assistant Commissioner, CGST, Ahmedabad South appeared on behalf of the appellant-Department and Shri Amal Paresh Dave, Advocate and Shri Parth P Rachchh, Advocate for the respondent. Shri Pillai reiterated the submissions made in the appeal. He also fairly submitted that the matter has been decided by the Gujarat High Court in the case of M/s Ananta Synthetic Innovations and the Department has not gone into appeal before the Supreme Court against the said judgement of the High Court. Shri Dave submitted that the issue has been decided in M/s Ananta Synthetic Innovations and M/s CTM Technical Textiles Ltd by the Gujarat High Court, wherein the Geomembranes have be....