2019 (3) TMI 836 - AAR - GST

Classification of goods - Interlining Fabrics - whether classified under HSN Code 5903 or should be classified as per the blend of Yam (in chapter 52-55)? - Held that - The specimen fabric i.e. Polyester Viscose fusing Interlining Woven Fabric being a partially covered with plastic which leads to plastic coated pattern that is visible on one side of the fabric will fall under Chapters 50 to 55, 58 or 60 as per chapter note 2(a)(4) of the relevant chapter 59 of the GST Tariff - the specimen fabric is a Polyester Viscose fusing Interlining Woven Fabric, partially covered with plastic which leads to plastic coated pattern that is visible on one side of the fabric and the same will fall under chapter 50 to 55, 58 or 60 of the GST Tariff - it does not fall under HSN Code 5903

Summary

Issues:
Classification of Interlining Fabrics under HSN Code 5903 or as per the blend of Yarn (in chapter 52-55).

Analysis:
The application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 sought an advance ruling on the classification of Interlining Fabrics under HSN Code 5903 or as per the blend of Yarn in chapters 52-55. Advance ruling under GST pertains to decisions provided by the authority on matters specified in the Act concerning the supply of goods or services. The applicant requested a ruling on the leviability of GST based on the classification of Interlining Fabrics. The application was admitted in accordance with Section 97(2)(a) of the CGST/SGST Act, 2017.

Opportunity for a personal hearing was granted, during which additional submissions were made by the applicant. Samples of the specimen fabric were drawn for testing at a Government Approved Lab to determine the details and characteristics of the fabric. The test report revealed that the fabric was a 'Polyester Viscose fusing Interlining Woven Fabric,' partially covered with plastic, leading to a visible pattern on one side of the fabric.

Based on the test report and the relevant chapter note of CHAPTER 59 of the GST Tariff, it was concluded that the specimen fabric falls under chapters 50 to 55, 58, or 60, as per chapter note 2(a)(4) of the relevant chapter 59. Therefore, the ruling determined that the specimen fabric, being partially coated with plastics and bearing designs, does not fall under HSN Code 5903 but falls under the aforementioned chapters of the GST Tariff. The ruling specifically applies to the specimen drawn and identical goods only.

In conclusion, the Authority for Advance Rulings, Uttarakhand held that the specimen fabric, a 'Polyester Viscose fusing Interlining Woven Fabric' partially covered with plastic and bearing designs, is classified under chapters 50 to 55, 58, or 60 of the GST Tariff as per the chapter note 2(a)(4) of Chapter 59, and not under HSN Code 5903.