TaxTMI 
TaxTMI 
2026 (10) TMI 366
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....u of Indian Standards (BIS) for manufacture of the above referred goods in accordance with IS 15351:2015; that the Indian standards i.e. 15351:2015 is for 'Agro-textiles Laminated HDPE fabrics Geomembranes for Canal or Pond lining. The manufacturing process of making Geomembrane is submitted by the applicant as under: Step-1: Basic raw materials i.e. HDPE granules and master batch containing Carbon Black are melted in Extruder by applying heat and friction and they are extruded in form of thin sheet, in molten form. Such thin sheet is passed through a quenching tank containing water to form a solid thin sheet, which is then slit into tapes/strips. These tapes/strips are passed through hot plate for orientation process so as to impart strength. The width of such tapes/strips is below 5 mm and they are wound on metal pipes for producing bobbins. Step-2: These tapes/strips are then loaded on circular looms or flat looms for weaving purposes and by employing weft and warp methods of weaving, woven fabrics are produced by using tapes/strips of width below 5 mm. These are uncoated woven fabrics of plastics and such fabrics in rolls are further processed for producin....
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....duction per unit area is high in Biofloc system. The applicant has further submitted that geomembranes are also used for the lining of water reservoirs and ponds to prevent from seepage of water; that it increases efficiency of water use since with higher velocities of flow, the canal networks can complete rotation of water in lesser time, thus saving on further seepage issues; that stocking density of animals in geomembrane lined biofloc pond is twice the density of an ordinary unlined pond & that aquaculture ponds using biofloc technology can bring big benefits to aquaculture farmers. 4. The applicant has asked the following seeking Advance Ruling on the same: 1. Whether the product, namely Geomembrane 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. 2. Whether the product namely Geomembrane manufactured and sold are covered by Entry No.168 of Schedule-II of Notification No.01/2017-Central Tax (Rate) and taxed at the rate of 6% CGST & 6% SGST or 12% IGST. 5. The applicant has mentioned the ingredients used for the production a....
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....oated, of a kind used in machinery or for other technical purposes; • Also, as per Note 1(g) of Section XI (Textile and Textile Articles), "monofilament of which any cross-sectional dimension exceeds 1 mm or strip or the like (for example, artificial straw) of an apparent worth exceeding 5mm, of plastics (Chapter 39), or plaits or fabrics or other basket ware or wickerwork of such monofilament or strip (Chapter 46)," is not covered under Section XI. For the purpose of this provision, plastic strips with an apparent width exceeding 5 mm shall fall within the scope of Chapter 39 of the relevant legal code, while plastic strips with an apparent width of 5 mm or less shall be classified under Section XI, covering Chapter 50 to Chapter 63, of Schedule-I of the Customs Tariff Act, 1975. • Main ingredients for classifying products under Chapter 5911 is that: (A) it must be a textile fibre, (B) it must be woven, coated, covered or laminated, (C) it must be used for technical purpose and (D) the width must be less than 5 mm. (A) Geomembrane is a textile fibre: The Ministry of textile via Official Gazette of India dated 17.3.2020 published 12 segments as Te....
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....r, the product HDPE Geomembrane manufactured by the applicant is IS 15351:2015 which is used in ponds and canals and both these products are different and are not related neither in manufacturing process nor in terms of its' end use. 7. Personal hearing was held on 06.08.2026 wherein S/Shri Nitesh Jain and Praveen Maheshwari, both C.As, appeared on behalf of the applicant and reiterated the facts & grounds as stated in the application. Discussion and findings 8. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same, except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling as well as the oral submissions made by the representative of the applicant during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant's submission/views in respect of question on which the advance ruling is sought. 10. The applica....
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....method of weaving, woven fabrics are produced. Rolls of uncoated fabrics loaded on extrusion lamination machine are drawn for feeding into the laminating unit. Mix of Low Density Polythene (LDPE), LLDPE and colour/black master batch is fed into the extruder through a Hopper, and melted by applying heat and friction, for forming a thin film in a molten state. Uncoated fabric is thus coated /laminated on one side by this molten mix, and passed over a chill roll containing chilled water. Edges of coated/laminated fabrics are trimmed and then wound on steel pipes on a winder and the other side of the fabric is also coated laminated to form a waterproof fabric. For increasing thickness of such fabric, one side coated/laminated fabrics are sandwiched laminated with a film and then laminated again with one more layer of fabric to form a coated/laminated fabric of higher thickness. Thereafter overlap sealing is done to increase the width of the coated/laminated fabric, and they are cut in required length to obtain required size of Geomembranes. 12. Next, we need to discuss the flow of classification for the above products which are arising during the course of manufacturing. The first p....
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....covers: (i) Strip folded along the length. (ii) Flattened tubes, whether or not folded along with the length. (iii) Strip, and articles referred to in (i) and (ii) above, compressed or twisted. If the width (or apparent width) is not uniform, classification is to be decided by reference to the average width. This heading also includes multiple (folded) or cabled strip and the like". 12.3 On going through the various sub-headings of Tariff Heading 5404, we find that sub- heading 54049020 covers "strips and the like of synthetic fibre material" hence, the above "HDPE strips or tapes less than 5 mm" would fall under sub-heading 54049020. Now, these strips are woven into fabrics which, we feel would be ideally covered under Tariff Heading 5407 and more specifically under sub-heading 540720. Tariff Heading 5407 reads as under: "5407 - Woven Fabrics of Synthetic Filament Yarn, including Woven Fabrics obtained from materials of Heading 5404". "5407 20 - Woven Fabrics obtained from strip or the like." Woven fabrics from HDPE Strips and Tapes of less than 5 mm of Tariff Heading 5404 shall be covered under Heading 5407 20 of the Cus....
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.... Other. 59114000 - Filtering or Straining cloth of a kind used in oil presses or the like, including that of human hair. 591190 - Other. 59119010 - Paper maker's felt, woven. 59119020 - Gaskets, washers, polishing discs and other machinery parts of textile articles. - Knotted or woven Geo-technical textile. 59119031 - Geogrid conforming to IS 17373. 59119032 - Geotextile conforming to IS 16391, 16392. 59119039 - Other. 59119040 - Mulch mats, conforming to IS 16202. 59119090 - Other. 12.5 In this regard, as the phrase technical uses has been stipulated as a criteria for Tariff 5911, we find it prudent to give weightage to the 'functional use'/end use classification' concept to determine the classification of 'Geomembrane'. Based on the technical uses of HDPE reinforced Geomembrane in Biofloc ponds submitted by the applicant, we hold that Geomembrane has technical use. Having held that Geomembrane has technical use, it becomes obligatory to refer to Chapter Note 8 to Chapter 59 of Tariff Heading 5911 which covers the phrase 'technical use' of Textile Fabrics. R....
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....abrics, felt and felt-lined woven fabrics, coated, covered or laminated with rubber, leather or other material (e.g. plastic),of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams)." (2) - - - - -- (3) - - - - - - (4) - - - - - - (5) - - - - - - (6) - - - - - - 12.7 We find that the impugned goods Geomembranes have purely technical use as it is used in aquaculture ponds teamed with Biofloc technology which is a highly beneficial bacterial colony based culture which keeps diseases at bay making it an ecologically sustainable symbiotic system. For Biofloc technology to be used, Geomembranes lined ponds are a must. Ponds lined with Geomembranes insulate the animals from diseases. The stocking density of animals in Geomembrane lined biofloc pond is twice the density of an ordinary unlined pond. 12.8 Thus, in light of Geomembrane passing the test of Section note (1)(g) to Section XI as well as Geomembrane satisfying the conditions of Note 8(1)(a) to Chapter 59, we are of the view that....
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....pecially woven fabrics from said HDPE Tapes/Strips covered under HSN Heading 5407 20 - HDPE Woven Fabrics referred as Woven Fobrics made from Synthetic Textile Material subjected to LDPE Coating and Lamination referred as Sandwich Lamination - Two or more pieces of said Sandwiched Laminated Geomembrane fabrics joined/seamed together by a suitable heat air blower sealing process keeping into requirement of customer based on which said fabrics cut and joint and cut sealed as per standard sealing process to be used as pond liner - Such Laminated Coated Fabrics used for technical purpose and is specifically covered under scope of HSN Heading 59111000 - Product fit for using as pond liner laminated textiles products and correctly classifiable under HSN Code 5911. [paras 7.3, 8, 8.1, 8.2, 8.3, 9]" 12.11 We find that the Authority for Advance Ruling, Gujarat in case of M/s. Texel Industries Ltd. vide Advance Ruling No. GUJ/GAAR/R/2022/11 has held that: 'Geomembrane is classified at HSN 5911, tariff item 59111000'. 12.12 It is observed that in both the above Rulings, the Authority of Advance Ruling has held that the product viz. Geomembrane merits classification unde....
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....es. 13.1 On going through the aforementioned Notification, we find that Entry No.168 of Schedule II of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 covers Tariff Heading 5911. We therefore find and hold that the applicant's product 'Geomembrane' is covered under Entry No.168 of Schedule-II of Notification No.01/2017-Central Tax (Rate) and is liable to GST @ 12% (6% CGST + 6%SGST) for the period upto 21.09.2025. 13.2 Now, to ascertain the applicable GST rate for the period w.e.f. 22.09.2025, a reference is required to be made to Notification No.09/2025-Central Tax (Rate) dated 17.09.2025. The relevant entry of the applicant's product as per Notification No.09/2025-Central Tax (Rate) dated 17.09.2025 reads as under: Schedule I - 2.5% S. No. Chapter/Heading/ Subheading/ Tariff item Description of goods (1) (2) (3) 386 5911 Textile products and articles, for technical uses, specified in Note 7 to this Chapter; such as Textile fabrics, felt and felt-lined woven fabrics, coated, covered or laminated with rubber, leather or other material, of a kind used for card clothing, and similar fabrics of a kind used for other techn....
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....wing Note shall be inserted, namely : - "3. For the purposes of heading 5903, "textile fabrics laminated with plastics" means products made by the assembly of one or more layers of fabrics with one or more sheets or film of plastics which are combined by any process that bonds the layers together, whether or not the sheets or film of plastics are visible to the naked eye in the cross-section."; (ii) the existing Notes 3, 4, 5, 6 and 7 shall respectively be re-numbered as Notes 4, 5, 6, 7 and 8 and in Note 8 as so re-numbered, in clause (a), for sub-clause (iii), the following sub-clause shall be substituted, namely : - "(iii) filtering or straining cloth of a kind used in oil presses or the like, of textile material or of human hair;"; (iii) in heading 5911,- (a) in the entry in column (2) occurring against heading 5911, for the word and figure "Note 7", the word and figure "Note 8" shall be substituted; (b) for the entry in column (2) occurring against tariff item 5911 40 00, the following shall be substituted, namely : - "- Filtering or straining cloth of a kind used in oil presses or the like, including that of human....