2019 (5) TMI 1038 - AAR - GST

Classification of goods - Kalava Raksha Sutra (Sacred Thread) - N/N. 1 /2017-Central Tax (Rate) dt. 28-06-2017 - HELD THAT - The commodity manufactured by the Applicant is a braided yarn made by a braiding machine which takes in dyed yarn of multiple numbers (8 or 12 or 16). The items are not by themselves Kalva raksha sutra sold directly to consumers but long lengths of thread of various composition sold in loose rolls to the Applicant s buyers who need to be further cut to individual sizes to make them Kalava Sutra. As per Section Note (B)(1) and (2) to Section XI covering Chapter 50 to 63, braided textile yarn are not included in chapter 50 to 55, but in Chapter Heading 5607, if they are tightly plaited. The commodity manufactured is liable to be classified based on the raw material as braided textile yarn under CTH 5607 i.e. made of polypropylene yarn under 56074900, made of other synthetic yarn under 56075090, made of cotton under 56079090.

Summary

Issues: Classification of the Commodity 'Kalava Raksha Sutra (Sacred Thread)'

Analysis:

1. Applicant's Submission and Manufacturing Process:
- The Applicant, engaged in manufacturing Kalava Raksha Sutra, sought advance ruling on the classification of the commodity.
- The Applicant purchases various yarn types and braids them into cords using a braiding machine, which are then sold by weight to buyers who further cut and make them into Kalava Sutra.
- The Applicant provided purchase and sales invoices, along with photographs of the manufacturing process.

2. Examination of Submissions:
- The purchased yarns include cotton, polyester, and viscose filament rayon yarns, which are braided together and sold in lengths by weight.
- The braided yarns are not directly sold as Kalava Sutra but as long threads to be cut by buyers for individual use.

3. Legal Classification:
- The classification is based on the Customs Tariff Act and related notes.
- The commodity manufactured by the Applicant, being braided yarn made of various materials, falls under Chapter Heading 5607 if tightly plaited.
- Chapter 5607 covers twine, cordage, ropes, and cables produced by twisting or braiding.

4. Explanation of Chapter Heading 5607:
- The heading includes twine, cordage, ropes, and cables that are plaited or braided, suitable for use in various applications.
- It specifies materials like hemp, jute, sisal, cotton, coir, and synthetic fibers commonly used in manufacturing such products.

5. Final Ruling:
- The Authority for Advance Ruling classified the braided textile yarns supplied by the Applicant based on the raw material used.
- Braided textile yarn made of Polypropylene Yarn is classified under 56074900, made of Other Synthetic Yarn under 56075090, and made of Cotton under 56079090.

By analyzing the manufacturing process, legal provisions, and classification criteria, the Authority provided a clear ruling on the classification of the commodity 'Kalava Raksha Sutra (Sacred Thread)' manufactured by the Applicant, ensuring compliance with the relevant tariff headings and explanatory notes.