TaxTMI 
TaxTMI 
2026 (5) TMI 1224
X X X X Extracts X X X X
X X X X Extracts X X X X
.... contended that, the major raw material used in the manufacture of polypropylene leno bags is plastic granules. 4. Learned Advocate appearing for the appellant has contended that, prior to the introduction of the Goods and Services Tax Act, 2017, the appellant voluntarily declared the finished products under Chapter Heading 3923 2900 of the Central Excise Tariff Act, 1985 and enjoyed the duty drawback. With the introduction of the Act of 2017, the Tariff Heading of the same product, having the same composition and involving the same process of manufacturing, has been changed to 6305 33 00, except that the rate of tax has become higher. 5. Learned Advocate appearing for the appellant has contended that, the appellant declared polypropylene leno bags for export under the Tariff Heading 3923 2900 and marketed the same product in the domestic market under the Tariff Heading 6305 33 00 of the First Schedule to the Customs Tariff Act, 1975, as made applicable to GST by Notification No. 1/2017-Central Tax Rate dated June 28, 2017. 6. Learned Advocate appearing for the appellant has contended that, polypropylene leno bags manufactured by the appellant are more in the nature of a t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ional dimension exceeds 1mm or strips or the like of an apparent width exceeding 5 millimeter of plastic or plaits or fabrics or other basketware or wickerwork of such monofilament or strips, are not covered by Section XI. 11. Learned Advocate appearing for the appellant has drawn the attention of the Court to the Chapter Heading 6305 and contended that, it relates to sacks and bags of a kind used for packing of goods. He has drawn the attention of the Court to 6305 33 00 which classifies other, of polypropylene strips or the like. He has contended that, by reason of such classification read with the exclusion note in Section XI the product of the appellant is to be classified under the Chapter Heading 6305 33 00. 12. Learned Advocate appearing for the appellant has contended that, the raw materials composition for manufacture of polypropylene leno bags is plastic granules with the composition of about 92% to 94% of PP is 3% to 5% of LLDPE and Colour Master Batch is 3% to 4% of Colour Master Batch. He has pointed out that, the manufacturing process includes manufacturing of polypropylene strips (tapes) which is woven to produce man-made textile material which is commercially ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., 1980 Volume 4 Supreme Court Cases 71 (Delhi Cloth and General Mills Co. Ltd. Vs. State of Rajasthan & Ors.) 20. Learned Advocate appearing for the appellant has relied upon 1976 Volume 2 Supreme Court Cases 241 (Dunlop India Limited Vs. Union of India & Ors & Madras Rubber Factory Limited Vs. Union), 1989 Supp (1) SCC 671 (Elson Machine Private Limited Vs. Collector of Central Excise), 2021 SCC OnLine Mad 16941 (N.V.K. Mohammed Rowther & Sons Vs. Joint Commr. Of GST and C. Ex), 1991 (52) ELT 608 (Shon Ceramics Vs. Collector of Central Excise) 1996 83 ELT A 179 (SC) (Collector Vs. Shon Ceramics) and 1991 (51) ELT 161 (SC) (Plasmac Machine Mfg Co. Private Limited Vs. Collector of Central Excise) for the proposition that there is no estoppel against classification under correct tariff heading. 21. Learned Advocate appearing for the appellant has relied upon 2012 Volume 3 Supreme Court Cases 518 (Collector of Central Excise, Bhopal Vs. Minwool Rock Fibres Limited) and 2022 Volume 2 Supreme Court Cases 523 (Chief Commissioner of Central Goods and Services Tax and Ors. Vs. Safari Retreats Private Limited and Ors.) for the proposition that when two views are possible, one which fa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... such classification also. It has declared the same product for the export under the Tariff Heading 3923 2900. 27. Appellant had applied for an advance ruling before the West Bengal AAR for classification of polypropylene leno bags manufactured by it under Chapter Heading 6305 33 00. The West Bengal AAR by its order dated July 06, 2018 had held that, the polypropylene leno bags manufactured by the appellant can be classified under the Chapter Heading 6305 33 00 if the same is made from woven polypropylene fabric using strips not exceeding a width of 5mm and without any impregnation, coating, excess or lamination with plastic. The West Bengal Appellate Authority for Advance Ruling had by its order dated October 25, 2018, set aside the order dated July 06, 2018 passed by the AAR. The Writ Court had dismissed the challenge to the order of the West Bengal Appellate Authority for Advance Ruling dated October 25, 2018. 28. Dunlop India Limited (supra), Elson Machine Private Limited (supra) and Plasmac Machine Mfg Co. Private Limited (supra) and Shon Ceramics (supra) have held that there cannot be any estoppel against classification under the correct Tariff Heading/Sub Heading. On t....