9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (6) TMI 705 - AAAR - GSTClassification of goods - fusible interlining cloth - whether the item is classifiable in Chapters 50 to 55 of the First Schedule of the Customs Tariff Act, 1975 or under Heading 5903 of the Tariff Act? - challenge to AAR decision - HELD THAT - It is clear from the sample produced by the appellant as well as the dot printing process that the product namely fusible interlining cloth qualifies the tests to be classified under sub-heading 5903 of the Tariff. It is seen from the sample of the. Fusible interlining cloth that the coating of polyethyIene can be seen with naked eye. can be bent manually around a cylinder and is not completely coated with plastics. The representative of the appellant strongly pleaded that their product is partially coated with plastic and bears design. However, on examination of the sample, it is seen that the pattern of dots that from on the surface of the product is due to the very process of dot printing and the same is visible on the entire surface of the cloth. Thus; it cannot be said that the cloth is partially coated with plastics and that the dotted design resulted from the treatment leading to such coating. The claim of the appellant s advocate does not hold good and the exclusion clause (4) of chapter note 2(a) of Chapter 59, which is essential for being excluded from Chapter 59, is not applicable to fusible interlining cloth manufactured by the appellant - thus, it is clear that the subject product merits classification under sub-heading 5903 of the Tariff. Appeal dismissed.
Issues Involved:
1. Classification of fusible interlining cloth under the Customs Tariff Act, 1975. 2. Applicability of CBEC Circulars and Chapter Notes to the classification. 3. Consideration of test reports and prior judicial decisions. Detailed Analysis: 1. Classification of Fusible Interlining Cloth: The appellant, M/s. Sadguru Seva Paridhan Pvt. Ltd. (SSPPL), sought a ruling on whether fusible interlining cloth should be classified under Chapters 50 to 55 or Heading 5903 of the Customs Tariff Act, 1975. The West Bengal Authority for Advance Ruling (WBAAR) classified the item under sub-heading 5903, referencing various CBEC Circulars and the production process. 2. Applicability of CBEC Circulars and Chapter Notes: The WBAAR referenced multiple CBEC Circulars: - Circular No. 24/Coated Fabric/88-CX.1 dated 02/09/1988 explained the dot printing process and concluded that fusible interlining cloth merits classification under Heading 5903 if it covers one side of the fabric with a continuous and adherent film of plastic. - Circular No. 5/89 dated 15/06/1989 stated that fusible interlining cloth made by discrete coating with plastic by dot printing process became classifiable under Heading 5903 after the insertion of Note 2(c) in Chapter 59. - Circular No. 433/66/98-CX-6 dated 27/11/1998 maintained that fusible interlining cloth partially coated with plastic should continue to be classified under Heading 5903 even after the deletion of Chapter Note 2(c) in 1995. The appellant argued that the WBAAR misread Circular No. 24/Coated Fabric/88-CX.1 and ignored the test report showing the goods were partially coated with polythene, falling outside Chapter 59. They also cited the case of Goodswear Fashion Pvt. Ltd. and Madura Coats vs. CBEC, which quashed Circular No. 433/66/98-CX. 3. Consideration of Test Reports and Prior Judicial Decisions: The appellant claimed the product should be classified under sub-heading 5208, 5209, or 5212, based on the test report and invoices. However, the WBAAR found that the fusible interlining cloth, being a textile coated with plastic on one side, does not involve a weaving process and thus cannot be classified under these sub-headings, which are for woven fabrics of cotton. The Revenue pointed out that the test report did not describe the sample as a 'fusible article,' and the judgment in Madura Coats vs. CBEC was not applicable. The WBAAR concluded that the product qualifies for classification under sub-heading 5903, as it is a textile fabric impregnated, coated, covered, or laminated with plastics, and the pattern of dots resulted from the dot printing process, not partial coating. Conclusion: The Appellate Authority dismissed the appeal, upholding the WBAAR's ruling that fusible interlining cloth is classifiable under sub-heading 5903 of the Customs Tariff Act, 1975. The decision emphasized the applicability of CBEC Circulars and the nature of the product's manufacturing process, rejecting the appellant's reliance on test reports and prior judicial decisions that did not consider the relevant circulars.
|
