TaxTMI 
TaxTMI 
2026 (8) TMI 1049
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....r stuffing box applications; that the packing is used across all process industries as stuffing-box packing in centrifugal/reciprocating pumps, valve stems, transfer systems, filtration pumps, circulation systems, hydraulic systems, general industrial pumps/valves and any application requiring chemical-resistant, low-friction sealing. 3. The applicant presently classifies their product under HSN 39209949 (articles of plastics), however product made by braiding PTFE fibre yarns into cords/braids is textile construction. The applicant has further submitted that Note 7(a)(vi) of Chapter 59 states as: "Cords, braids and the like ... of a kind used in industry as packing or lubricating materials"; that Note 7(b) of Chapter 59 states: "Textile articles ... used for technical purposes' (machinery parts) and that Industry practice classifies identical PTFE braided gland packings under HSN 59119090 notifying customers of 5% GST rate w.e.f. 22.09.2025. 4. The applicant has asked the following question for advance ruling: "1. Whether PTFE braided gland packing, manufactured by interlocked/cross-plaited braiding of pure PTFE fibre yarn into flexible packing supplied in coils for....
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....rectangular (including square) shape (other than those having the character of the products of heading 5908 to 5910), the following only - ** (vi) Cords, braids and the like, whether or not coated, impregnated or reinforced with metal, of a kind used in industry as packing or industrial materials ;** (b) Textile articles (other than those of headings 5908 to 5910) of a kind used for technical purposes (for example, textile fabrics and felts, endless or fitted with linking devices, of a kind used in paper making or similar machines (for example, for pulp or asbestos-cement) gaskets, washers, polishing discs and other machinery parts)." • The product is not a solid plastic or rubber moulding; it is produced by braiding PTFE yarns/filaments on braiding machines, akin to braided textile ropes or packs. • The essential character is therefore that of a textile article (braided textile structure) made from PTFE filaments, which are treated as man-made textile materials under the Tariff. • On a combined reading of Heading 5911 and Note 7 to Chapter 59, textile articles such as packing, gaskets and similar articles for industrial mach....
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....rial practice, PTFE braided gland packings are classified under HSN 59119090 and charged to GST @ 5% w.e.f. 22.09.2025. 10. The applicant has further submitted that their product is not a solid plastic or rubber moulding but the essential character is that of a textile article (braided textile structure) made from PTFE filaments, which are treated as man-made textile materials under the Tariff; that on a combined reading of Heading 5911 and Note 7 to Chapter 59, textile articles such as packing, gaskets and similar articles for industrial machinery are covered where their essential character is textile and they are for technical uses; that their product satisfies both conditions i.e. textile construction and use as technical article in machinery and industrial process. The applicant has concluded their submission by stating that CHAMPION SEALS INDIA PRIVATE LIMITED classifies similar "interlocked braided PTFE fibre yarn packing" under 59119090 where GST rate is 5%. 11. We find that the applicant is presently classifying their product 'PTFE braided gland packings' under sub-heading 39209949 and paying GST @ 18% but is of the opinion that the product would be rightly classifiab....
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....n 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 - - - - - - - - 7. Heading 3915 does not apply to 8. For the purposes of heading 3917, 9.For the purposes of heading 3918, 10. In headings 3920 and 3921, the expression-plates, sheets, film foil and strip applies only to plates, sheets, film, foil and strip (other than those of Chapter 54) and to blocks of regular geometric shape, whether or not printed or otherwise surface-worked, uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use). 11. Heading 3925 applies only to the following articles, not being products covered by any of the earlier headings of sub-Chapter II: (a) reservoirs, tanks (including septic tanks), vats and similar containers, of a capacity exceeding 300 l; (b) structural elements used, for example, in floors, walls or partitions, ceilings or roofs; (c) gutters and fittings thereof; (d) doors, windows and their ....
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....ight over every other single comonomer unit. For this purpose, constituent monomer units of polymers falling in the same sub-heading shall be taken together. Only the constituent comonomer units of the polymers in the series under consideration are to be compared; (2) chemically modified polymers are to be classified in the sub-heading appropriate to the unmodified polymer. Polymer blends are to be classified in the same sub-heading as polymers of the same monomer units in the same proportions. 2. For the purposes of sub-heading 3920 43, the term -plasticisers includes secondary plasticisers. Supplementary Note: 1. In this Chapter, reference to any standard of the Bureau of Indian Standards refers to the last published version of that standard. Relevant portions of Tariff Heading 3920 3920 Other plates, sheets, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials: 3920 10 - Of polymers of ethylene: 3920 99 39 ---- Other --- Sheet of poly (tetrafluoro-ethylene) (PTFE) 3920 99 41 ----: Rigid, plain 3920 99 42....
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...., with ground edges, drilled, milled, hemmed, twisted, framed or otherwise worked or cut into shapes other than rectangular (including square) are generally classified as articles of headings 39.18, 39.19 or 39.22 to 39.26. Sub-heading Explanatory Note. Sub-headings 3920.43 and 3920.4900 Products of these sub-headings are distinguished on the basis of their plasticiser content. For this purpose, primary plasticisers and secondary plasticisers must be taken together (see Sub-heading Note 2 to this Chapter). Primary plasticisers are materials of low volatility which, when added to a polymer, generally cause an increase in its flexibility (e.g., phthalate esters, adipate esters, trimellitate esters, phosphate esters, sebacate esters, azelate esters). Secondary plasticisers, also known as extenders, are seldom used alone as plasticisers. When present in combination with primary plasticisers, the primary plasticising action will be modified or enhanced. Secondary plasticisers also act as fire retardants, (e.g., chlorinated paraffins) or lubricants (e.g., epoxidised soybean oil, epoxidised linseed oil). Relevant portions of Chapter No....
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.... (b) textile articles (other than those of headings 5908 to 5910) of a kind used for technical purposes [for example, textile fabrics and felts, endless or fitted with linking devices, of a kind used in paper making or similar machines (for example, for pulp or asbestos-cement), gaskets, washers, polishing discs and other machinery parts]. Relevant portions of Tariff Heading No.5911 as appearing in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) 5911 TEXTILE PRODUCTS AND ARTICLES, FOR TECHNICAL USES, SPECIFIED IN NOTE 8 TO THIS CHAPTER 5911 10 00 --- Textile fabrics, felt and felt-lined woven fabrics - --- Knitted or woven Geo-technical textile: 5911 90 31 ---- Geogrid conforming to IS 17373 5911 90 32 ---- Geotextile conforming to IS 16391, IS 16392 5911 90 39 ---- Other 5911 90 40 --- Mulch mats, conforming to IS 16202 5911 90 90 --- Other HSN Notes to heading 5911 59.11- Textile products and articles, for technical uses, specified in Note 8 to this Chapter(+). 5911.10 -Textile fabrics, felt and felt-lined woven fabrics, coated, covered or laminated with rubber, leather....
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....us fabrics (for example, with a gauze, lena or plain weave), geometrically accurate as to size and shape (usually square) of the meshes, which must not be deformed by use. They are mainly used for sifting (e.g., flour, abrasive powders, powdered plastics, cattle food), filtering or for screen printing. Bolting cloths are generally made of hard twisted undischarged silk yarn or of synthetic filament yarn. (3) Straining cloth (e.g., woven filter fabrics and needled filter fabrics), whether or not impregnated, of a kind used in oil presses or for similar filtering purposes (e.g., in sugar refineries or breweries) and for gas cleaning or similar technical applications in industrial dust collecting systems. The heading includes oil filtering cloth, certain thick heavy fabrics of wool or of other animal hair, and certain unbleached fabrics of synthetic fibres (e.g., nylon) thinner than the foregoing but of a close weave and having a characteristic rigidity. It also includes similar straining cloth of human hair. (4) Flat woven textile fabrics with multiple warp or weft, whether or not felted, impregnated or coated, of a kind used in machinery or for other technical purp....
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....rticles remain essentially articles of textile. Sub-heading Explanatory Note. Sub-heading 5911.9000 Articles formed of linked monofilament yarn spirals and having similar uses to the textile fabrics and felts of a kind used in paper-making or similar machines fall in this sub-heading and not in sub-heading 5911.31 or 5911.32. 12. The applicant has submitted that they manufacture PTFE braided gland packing by interlocked or cross-plaited braiding of pure PTFE fibre yarn on braiding machines into flexible packing of square/round cross-section (3mm to 25mm) and that the product is high-purity white packing made from tough, thermally stable PTFE fibre yarn, sometimes impregnated with densified PTFE particles for lubrication. They have also submitted that it is cleansed of organic matter and supplied in coils/boxes of 10 m lengths for stuffing box applications and that the packing is used across all process industries as stuffing-box packing in centrifugal/reciprocating pumps, valve stems, transfer systems, filtration pumps, circulation systems, hydraulic systems, general industrial pumps/valves and any application requiring chemical-resistant, low-friction....
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.... (Textile and Textile Articles) i.e. the product must first qualify as a textile under Section XI. We find that Note 1 of Section XI of the Customs Tariff Act. 1975 contains a list of articles/commodities which are not covered/excluded from this section. Note 1(g) of Note 1 reads as under: "monofilament of which any cross-sectional dimension exceeds 1mm or strip or the like (for example, artificial straw) of an apparent width exceeding 5mm of plastics (Chapter 39) - - - - From a plain reading of Note 1(g) of Section XI, it is clear that Note 1(g) excludes from Section XI, any monofilament of plastics, whose cross-sectional dimension exceeds 1mm, directing such goods to Chapter 39. Since PTFE braided gland packing, manufactured by the applicant has a cross-sectional dimension of 3mm to 25mm - far exceeding 1mm in all cases - the goods are excluded from Section XI at the threshold, and heading 5911 is out of bounds regardless of how closely the product matches the Notes for that heading in Chapter 59. Also, as per the said note, the said product would be covered under Chapter 39. 14. It is also an undisputable fact that 'PTFE braided gland packing' are entirely made of....
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....1-1988 holding 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 plastic raw material, therefore, tapes made from this material would be covered as articles made. of plastics. This decision of the CEGAT was taken to the Supreme Court by the Union of India, but the appeal was dismissed on merits in C.A. No. 8369 of 83 dated 21-10-1983. Thereafter the Government of India issued Circular 32/85-A.U. dated 20th November, 1985. In the Circular it was said that the Board had decided that HDPE woven sacks should be considered as articles of plastic and that the Tribunal's decision in Shellya Industries v. Collector, Centra....
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....lastic 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 accepted. In common parlance also the HDPE woven sacks are known as plastic woven sacks industry as is apparent from the annexures filed with the petition and the authenticity of which has not been disputed. The Dy. Director of the Ministry of Textile, Office of Textile Commissioner has, vide letter dated 2-3-1989 informed one of the petitioners that the HDPE/PP weaving activity on regular looms as well as circular looms manufacturing fall under the purview of DGTD and no installation permission or registr....
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....lso 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 Heading 3920, Sub-heading 3920.32 of the Central Excise Tariff Act and not under heading 5406, sub-heading 5406.90. Similarly HDPE Sacks fall into Heading 3923, 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, silk, artificial silk or other fibre shall be called textiles. 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'. Further the Hon'ble High Court has also mentioned that the Central Excise authorities had erred in concluding that since the strip is of less than 5 mm, therefore, it falls within heading 5406 ignoring the fact that in addition to this, there should be something to arrive at a conclusion that the afo....
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....ke to draw the applicant's attention to the fact that classification under GST is required to be determined in accordance with the relevant tariff entries, chapter notes, section notes, explanatory notes and the actual nature and composition of the goods and the classification adopted by another unit manufacturing similar products cannot be relied upon to justify the classification of their product. Further, the jurisdictional Assistant Commissioner has informed that the applicant, since registration, has been consistently classifying and supplying their product under Chapter 39 only and no substantial change in the nature, composition, manufacturing process or usage of the product has been brought on record to warrant any subsequent reclassification under Chapter 59. In view of the discussions in paras supra, the applicant's proposed claim that their product should get covered under Chapter Heading 5911 does not hold water as their product manufactured from polytetrafluroethylene (PTFE) are articles of plastic and are therefore undoubtedly classifiable under Chapter 39 of the Customs Tariff Act, 1975 only. 17. The applicant has also submitted that they are presently classifying....
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....hedule to the Customs Tariff Act, 1975 (51 of 1975), falls under Entry No. 121 of Schedule II of Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025 and is liable to GST at the rate 18% (9% CGST + 9% SGST). 20. The applicant while contending that their product is treated as a textile product in the industry has stated that the essential character of their product is that of a textile article (braided textile structure) made from PTFE filaments and that industry practice classifies identical PTFE braided gland packings under HSN 59119090 chargeable to 5% GST w.e.f. 22.09.2025. The applicant, in his contention, seems to suggest that industry practice should be given weightage when classifying products. In this context, we would like to refer to the judgement of Hon'ble Supreme Court in the case of Commissioner of Customs (Import) vs. M.s Welkin Foods (2026 INSC 19) wherein the Apex Court has authoritatively held that in the contemporary HSN-based classification regime, the common or trade parlance test is not a measure of first resort and can be invoked only when the governing statute - including the relevant tariff heading, Section Notes, Chapter Notes, and HSN Explanato....