2020 (6) TMI 445 - AAR - GST

Classification of goods - Heat Activated Ultra-Violet (HAUV) Polyester Film with Adhesive Coating and UV Printing - applicable HSN code - HELD THAT - The subject product is nothing but a self-adhesive film which is able to stick permanently to paper and classifiable under Chapter 3919. Our finding is also strengthened by the fact that applicant is importing the said goods under Chapter 3919. The goods which fall under Chapter 3919, as in the subject case will not fall under Chapter 49. The fact of the matter is that the said goods during import are classified under Chapter 3919 and the same has been accepted by the applicant. It will therefore not be open for them to apply for a change of classification, for the same product, to this authority.

Summary

Issues involved: Determination of applicable HSN code for the material 'Heat Activated Ultra-Violet (HAUV) Polyester Film with Adhesive Coating and UV Printing'.

Analysis:

1. Facts and Contention - As per the Applicant:
The applicant sought an advance ruling regarding the correct HSN code for the product in question. The product was described as a polyester film coated with Heat Activated Adhesive coating and UV printing, with specific features like tamper-evidence and permanence when stuck to paper. The applicant presented two possible HSN codes, 3919 attracting 18% GST and 4911 attracting 12% GST, seeking clarification on the appropriate classification.

2. Contention - As per the Concerned Officer:
The Jurisdiction Officer did not provide any written submissions regarding the issue at hand.

3. Observations and Findings:
The Authority examined the details provided by the applicant and the nature of the product in question. It was noted that the applicant imported the product under Chapter Heading 3919 and sought to sell it under Chapter Heading 4911 due to the lower GST rate. However, based on the description of the product and the relevant GST Tariff classifications, the Authority concluded that the product should be classified under Chapter 3919 as a self-adhesive film, as it aligns with the description provided under this heading.

4. Conclusion:
After thorough deliberation, the Authority ruled that the 'Heat Activated Ultra-Violet (HAUV) Polyester Film with Adhesive Coating and UV Printing' should be classified under Chapter 3919 of the GST Tariff. The decision was based on the nature of the product and its alignment with the description provided under the said chapter.