2020 (2) TMI 1468 - AAR - GST

Classification of goods - Rate of GST - sleeping bags - whether qualify as Other Sleeping Bag, filled and/or quilted with other textile material (excluding filling of Feathers or down) falling under Chapter Heading 94043090 and attract GST at the rate of 12% Adv.? - HELD THAT - As per the description provided by the applicant and as per the Specification of sleeping bag of tender notice of NDRF, the sleeping bag should have insulation of non allergic synthetic fill, outer shell should be of 100% polyester and treated with a durable water repellant finish, inside shell should be of anti-carcinogen, anti-allergic material, containing 50% cotton. Further as per the description provided by the applicant the inner fill is quilted in order to keep the layer intact. In view of this, we observe that the sleeping bag in question is made up of textile material, does not have fill of feather or down and quilted to keep the layer intact. As per the Rule 3a of the Rules of Interpretation, as applicable to the Customs Tariff, the heading which provides the most specific description shall be preferred to heading having more general description - in view of the application of the applicant the impugned product falls under the category of quilted textile material and accordingly liable to be classified under Chapter Heading 9404 30 90 and accordingly attracts to such GST rate as prescribed under Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 (as amended).

Summary

Issues:
Classification of sleeping bags for GST rate determination under Chapter Heading 94043090.

Analysis:
1. The applicant, a registered assessee under GST, sought an advance ruling regarding the classification of their product, a sleeping bag, for GST purposes.
2. The sleeping bag in question was described to have specific features like insulation of non-allergic synthetic fill, outer shell of 100% polyester, and quilted with other textile material excluding feathers or down.
3. The applicant argued that the product should be classified as "Other Sleeping Bags" under Chapter Heading 94043090, attracting a GST rate of 12%.
4. The Jurisdictional GST Officer opined that the product may be classified under 94043090 at an 18% tax rate, as it does not contain feathers or down.
5. During the personal hearing, the applicant reiterated their submission and referred to the judgment of the Hon'ble Supreme Court in support of their argument.

Discussion and Findings:
6. The Authority admitted the application for consideration under Section 97(2)(a) of the CGST Act 2017, pertaining to the classification of goods.
7. It was observed that the sleeping bag in question was made of textile material, quilted to keep the layers intact, and did not contain feathers or down.
8. The Authority analyzed the relevant customs tariff headings and exclusion clauses to determine the classification of the product.
9. Referring to Notification No. 1/2017-Integrated Tax (Rate), the Authority noted the applicable GST rates for quilted textile materials.
10. Following the Rules of Interpretation and the precedent set by the Supreme Court, the Authority concluded that the product fell under Chapter Heading 94043090 and should be classified as quilted textile material.

Ruling:
11. The Authority ruled that the sleeping bag described by the applicant would be classified under Chapter Heading 94043090 of the GST Tariff, attracting GST at the applicable rate specified in Notification No. 01/2017-Central Tax (Rate).
12. The ruling is valid within the jurisdiction of the Authority for Advance Ruling, Uttar Pradesh, subject to the provisions of the CGST Act, 2017.