TaxTMI 
TaxTMI 
2026 (8) TMI 974
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....tic twine (sutli) appears to fall under HSN 5607. He has stated that GST was being charged at the rate of 12% prior to 22.09.2025 and at the rate of 5% thereafter on the said product. He has therefore requested clarification regarding the applicable GST rate. 3. The question raised by the Applicant is as under :- "1. Correct HSN for plastic twine (sutli). 2. Correct GST rate to charge on plastic twine(sutli)." 4. Personal hearing was granted on 08.04.2026 wherein Shri Amit V. Kanjiya (Trade name: Akplast Packaging) appeared on behalf of the applicant and reiterated the facts & grounds as stated in the application. During the course of hearing, the representative (the applicant himself) was asked to submit the manufacturing process of the product. 5. The applicant vide email dated 09.04.2026 has submitted the manufacturing process of their product and also his interpretation of law in this regard, which is as under:- 5.1 Process of making Plastic Sutli (Twine) Extrusion in textiles is a manufacturing process that melts polymer resins-such as polyester, nylon, or polypropylene, polyethylene -and forces them through a specialized metal plate called a T....
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...." (ii) HSN 3923 is for finished articles that have a defined shape (boxes, bags) while HSN 5607 belongs to the Textile Section (Section XI). Plastic sutli (twine) is a "linear textile." Because the tapes are stretched (oriented) and then twisted or braided, they lose their identity as a simple "plastic strip" and gain the identity of "twine." (iii) The manufacturing process described above (Orientation and Twisting) is a textile manufacturing process. While the raw material is plastic (Chapter 39), the transformation into a twisted cord brings it under Chapter 56. Simple plastic packing strips (like those used in heat-sealing machines) might stay in 3923, but twisted sutli (twine) used for manual knotting is traditionally and technically "twine." (iv) HSN 39239090 is a "residual" or "catch-all" category for miscellaneous plastic items while HSN 56074900 is a "specific" category for "Twine, cordage, ropes and cables of Polyethylene or Polypropylene." General Rule of Interpretation 3(a) states that a specific description shall be preferred to a general description. "Twine of Polypropylene" is a much more specific description of sutli (twine) than "Other article for packing."....
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..... (viii) Why 3923 9090 is incorrect: • Heading 3923 covers: "Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics." • Typical examples: Bottles, cans, boxes, crates, bags, sacks, carboys, caps, closures, etc. • Plastic sutli is not a container or closure. • Does not itself "convey" or "contain" goods; it binds or ties them. • Is a linear twine, not a shaped article. • Therefore, 3923 9090 (other packing articles) is a misfit and too general, especially when a specific heading (5607) exists for twine of PP/PE strip. (ix) Correct classification: 5607 4900: • Based on: • Nature of product: twine/sutli. • Material: polypropylene/polyethylene strip or tape. • Manufacturing process: extrusion -> slitting -> stretching -> twisting. • Use: tying, binding, bundling. • HSN structure and notes: specific coverage under Heading 5607 for twine of PP/PE strip. • The appropriate classification is HSN 5607 4900 - Twine, cordage, ropes and cables, of polyethylene or ....
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.... plate and over two sets of rollers (Godet rolls) stretching it significantly and making it a softer yarn. (vi) This stretching aligns the polymer chains longitudinally without which the plastic would snap and with it, the sutli (twine) gains the high tensile strength required for heavy-duty tying, (vii) The finished twisted sutli (twine) is wound onto a coreless cone shaped pipe into a "cheese cone" (cylindrical roll) or a ball, ready for distribution. 11. The applicant has also submitted that HSN 3923 covers "Articles for the conveyance or packing of goods, of plastics" which generally refers to finished containers, bags, or stoppers whereas HSN 5607, however, specifically covers "Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics." He has further submitted that Plastic sutli (twine) is a "linear textile" because the tapes are stretched (oriented) and then twisted or braided, they lose their identity as a simple "plastic strip" and gain the identity of "twine"; that the manufacturing process described above (Orientation and Twisting) is a textile manufacturing....
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....pounds (Chapter 29); (d) heparin or its salts (heading 3001); (e) solutions (other than collodions) consisting of any of the products specified in headings 3901 to 3913 in volatile organic solvents when the weight of the solvent exceeds 50% of the weight of the solution (heading 3208); stamping foils of heading 3212; (f) organic surface-active agents or preparation of heading 3402; (g) run gums or ester gums (heading 3806); (h) prepared additives for mineral oils (including gasoline) or for other liquids used for the same purposes as mineral oils. (ij) prepared hydraulic fluids based on polyglycols, silicones or other polymers of Chapter 39 (heading 3819); (k) diagnostic or laboratory reagents on a backing of plastics (heading 3822); (I) synthetic rubber, as defined for the purpose of Chapter 40, or articles thereof; (m) saddlery or harness (heading 4201) or trunks, suit-cases, hand-bags or other containers of heading 4202; (n) plaits, wickerwork or other articles of Chapter 46; (o) wall coverings of heading 4814; (p) goods of Section XI(textiles and textile articles); ....
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....inates, copolymers or polymer blends, as the case may be, are to be classified in the heading which occurs last in numerical order among those which equally merit consideration. 5. Chemically modified polymers, that is those in which only appendages to the main polymer chain have been changed by chemical reaction, are to be classified in the heading appropriate to the unmodified polymer. This provision does not apply to graft copolymers. 6. In headings 3901 to 3914, the expression -primary forms applies only to the following forms: (a) liquids and pastes, including dispersions (emulsions and suspensions) and solutions; (b) blocks of irregular shape, lumps, powders (including moulding powders), granules, flakes and similar bulk forms. 7. Heading 3915 does not apply to waste, parings and scrap of a single thermoplastic material, transformed into primary forms (headings 3901 to 3914). 8. For the purposes of heading 3917, the expression -tubes, pipes and hoses means hollow products, whether semi-manufactures or finished products, of a kind generally used for conveying, conducting or distributing gases or liquids (for example, ribbed....
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....r, polymers (including copolymers) and chemically modified polymers are to be classified according to the following provisions: (a) where there is a sub-heading named -Other in the same series: (1) the designation in a sub-heading of a polymer by the prefix-poly (for example polyethylene and polyamide-6,6) means that the constituent monomer unit or monomer units of the named polymer taken together must contribute 95% or more by weight of the total polymer content (2) the copolymers named in sub-headings 3901 30, 3901 40, 3903 20, 3903 30, and 3904 30 are to be classified in those sub-headings, provided that the comonomer units of the named copolymers contribute 95% or more by weight of the total polymer content; (3) chemically modified polymer are to be classified in the sub-heading named -Other, provided that the chemically modified polymers are not more specifically covered by an other subheading; (4) polymers not meeting (1), (2) or (3) above, are to be classified in the sub-heading, among the remaining sub-headings in the series, covering polymers of that monomer unit which predominates by weight over every other single comonomer uni....
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....bottle 3923 50 90 --- Other 3923 90 - Other : 3923 90 10 --- Insulated ware 3923 90 20 --- Aseptic bags 3923 90 90 --- Other HSN Notes for heading 3923: 39.23 - Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics. 3923 .10 - Boxes, cases, crates and similar articles Sacks and bags (including cones) : 3923.21 -- Of polymers of ethylene 3923.29 -- Of other plastics 3923.30 - Carboys, bottles, flasks and similar articles 3923.40 - Spools, cops, bobbins and similar supports 3923.50 - Stoppers, lids, caps and other closures 3923.90 -Other This heading covers all articles of plastics commonly used for the packing or conveyance of all kinds of products. The articles covered include: (a) Containers such as boxes, cases, crates, sacks and bags (including cones and refuse sacks), casks, cans, carboys, bottles and flasks. The heading also covers: (i) Cups without handles having the character of containers used for the packing or conveyance of certain foodstuffs, ....
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....ed, coated, covered or laminated with plastics or rubber, containing 50 per cent. or less by weight of textile material or felt completely embedded in plastics or rubber (Chapter 39 or 40); (b) nonwovens, either completely embedded in plastics or rubber, or entirely coated or covered on both sides with such materials, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (Chapter 39 or 40); or (c) plates, sheets or strip of cellular plastics or cellular rubber combined with felt or nonwovens, where the textile material is present merely for reinforcing purposes (Chapter 39 or 40). 4. Heading 5604 does not cover textile yarn, or strip or the like of heading 5404 or 5405, in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55); for the purpose of this provision, no account should be taken of any resulting change of colour. Heading 5607 as per the First Schedule to the Customs Tariff Act, 1975 (51 of 1975): 5607 TWINE, CORDAGE, ROPES AND CABLES, WHETHER OR NOT PLAITED OR BRAIDED AND WHETHER OR NOT IMPREGNATED, COATED, C....
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....wever, the plaited goods of this heading differ from those of heading 58.08 less by the nature of the yarn used than by the fact that they are tightly plaited, with a compact structure, making them suitable for use as twine, cordage, ropes or cables. In addition, they are usually uncoloured. The most important fibres used in the manufacture of twine, cordage, ropes or cables are hemp, jute, sisal, cotton, coir and synthetic fibres. Twine, cordage, ropes and cables of paper yam are classified here only if plaited or reinforced with metal thread. Twine, cordage, ropes and cables are used as binder twine, for tying packages, towing, loading, etc. Their cross-section is usually round but some (e.g., some transmission cables) have a square, trapezoidal or triangular section. They are normally unbleached, but may be dyed, impregnated to make them rot-proof, formed of different coloured strands, or impregnated, 13. The applicant is found to have submitted that the manufacturing process of 'Plastic twine (sutli)' i.e. (Orientation and Twisting) is a textile manufacturing process and while the raw material is plastic (Chapter 39), the transformation into a twis....
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....n this petition were manufacturing HDPE woven sacks and for that purpose they had installed HDPE tape plants for manufacture of oriented tape (plastic tape). The petitioners made representations to the Assistant Collector, Central Excise, Indore Division, to the effect that the HDPE woven sacks are articles of plastic and are thus classifiable under Chapter 39 of the Central Excise Tariff Act, 1985. The contention of the petitioners was not accepted by the Assistant Collector, Central Excise, Division Indore and he passed an order dated 11-1-1988 wherein it was held that the HDPE strips of an apparent width of 5 mm are classifiable under sub-head No. 5406.11, of Polypropylene under Chapter sub-head 5406.90 as fabrics thereof under Chapter heading 5408.00. Relevant portions of the said judgement of the Hon'ble High Court are reproduced hereunder: "16. Similarly the CEGAT Special Bench in the case of Shree Radhe Industries, Kalol v. Collector of Customs and Central Excise, Ahmedabad (1983 ELT 379) has held that since the HDPE tapes are neither man-made filament yarn nor cellulosic spun yarn, therefore, they do not fit into any category of Item 18 of CET. HDPE is a well known....
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....nition of 'fibre' includes the regenerated cellulose, rayon, nylon and the like. Nowhere in the aforesaid definition of 'fibre' or 'textiles' plastic has been mentioned as a commodity to be included in the definition of 'fibre' or 'textiles'. Now in Shree Radhe Industries case (supra) and the Shellya Industries case (supra) irrespective of the entries in the tariff as prevailing then, it has been held that the HDPE sacks are articles made of plastic; they are made of high density polyethylene which is a plastic raw material and it has further been held that they are not man-made, filament yarn but are articles of plastic. The circular of the Central Board of Direct Taxes dated 20-1-1985 also clearly says that the Board has decided that so long as the finished articles of plastic is made out of plastic material falling under Tariff No. 15A(i), even if at the intermediate stage articles classifiable under Item No. 15A(ii) if any tariff item emerges, the said product would be considered to have been produced out of plastic material falling under Tariff Item No. 15A(i) and, therefore, the HDPE woven sacks should be considered as articles of plastic and that the Tribunal's decision be a....
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.... the CEGAT approved by the Supreme Court and accepted by the Department, all clearly go to show that the HDPE bags are the bags woven by the plastic strips and they, therefore, are goods of plastic and the material used for weaving those bags being the strips of plastic made from plastic granules, the strips of plastic used for weaving the aforesaid HDPE woven sacks has to be classified as an Item under entry 39.20 of Chapter 39 and not under entry 54.06 of Chapter 54. Accordingly the entries of the finished goods have also to be made under the proper Chapter of the Tariff Act treating them as the finished goods made of plastic strips. 21. In the result we hold that HDPE strips or tapes fall under the Head. 39.20, sub-heading 3920.32 of the Central Excise Tariff Act and not under Head. 54.06, sub-heading 5406.90. Similarly the HDPE sacks fall into Heading 39.23, sub-heading 3923.90....." 16. In the above decision, Hon'ble High Court of Madhya Pradesh has discussed what is textile according to Section 2(g) of Textiles Committee Act, 1963 (Act 41 of 63) and according to the above definition, any fabric or cloth or yarn or garment if made wholly or in part of cotton, wool,....
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...., we are in agreement with the applicant's views since we also find that heading 3923 refers to articles for the conveyance or packing of goods, of plastics and generally covers articles of plastics such as stoppers, lids, caps, boxes, cases, crates, watch-box, jewellery boxes, carboys, bottles, flasks, insulated wares, spools, bobbins etc. and similar/like articles. 'Plastic twine' (sutli) manufactured by the applicant, being completely different from the articles mentioned above, cannot, by any stretch of imagination, be classified under the heading 3923. It, therefore, becomes necessary to find out under which heading of Chapter 39 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) the applicant's product falls. 18. We have gone through the entire Chapter 39 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) including the chapter notes and various headings falling under the said Chapter and find that 'plastic twine' does not find any specific mention in any of the Headings 3901 to 3925 of the said chapter. We also find that heading 3926 reads as 'Other articles of plastics and articles of other materials of headings 3901 to 3914', which implies....
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.... 3926 40 19 ---- Other --- Beads : 3926 40 21 ---- Of polyurethane foam 3926 40 29 ---- Other --- Statuettes : 3926 40 31 ---- Of polyurethane foam 3926 40 39 ---- Other --- Table and other household articles (including hotel and restaurant) for decoration : 3926 40 41 ---- Of polyurethane foam 3926 40 49 ---- Other --- Decorative sheets : 3926 40 51 ---- Of polyurethane foam 3926 40 59 ---- Other 3926 40 60 --- Sequine --- Other : 3926 40 91 ---- Of polyurethane foam 3926 40 99 ---- Other 3926 90 - Other : 3926 90 10 --- PVC belt conveyor --- Couplers, packing rings, O rings and the like: 3926 90 21 ---- Of polyurethane foam 3926 90 29 ---- Other --- Lasts, with or without steel hinges ; EVA and grape sheets for soles and heels; welts: 3926 90 31 ---- Of polyurethane foam 3926 90 39 ---- Other --- Rings, buckles, tacks, washers and other decorative fittings made of plastic used a....
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....s or belting of any kind, presented with the machines or apparatus for which they are designed, whether or not actually mounted, are classified with that machine or apparatus (e.g., Section XVI). In addition, this heading does not cover transmission or conveyor belts or belting, of textile material, impregnated, coated, covered or laminated with plastics (Section XI, e.g., heading 59.10). (8) Ion-exchange columns filled with polymers of heading 39.14. (9) Plastic containers filled with carboxymethylcellulose (used as ice-bags). (10) Tool boxes or cases, not specially shaped or internally fitted to contain particular tools with or without their accessories (see the Explanatory Note to heading 42.02). (11) Pacifiers (or "baby's dummies"); ice-bags; douche bags, enema bags, and fittings therefore; invalid and similar nursing cushions; pessaries; sheath contraceptives (prophylactics); bulbs for syringes. (12) Various other articles such as fasteners for handbags, corners for suit-cases, suspension hooks, protective cups and glides for placing under furniture, handles (of tools, knives, forks, etc.), beads, watch "glasses", figures and letter....