2022 (12) TMI 255 - AAR - GST

Classification of goods - Satin Rolls and Taffeta Rolls with sizes between 19mm to 40mm - to be classified under HSN 5806, which attracts GST rate of 5% or under HSN 5807 that attracts GST rate of 12% - HELD THAT - In the instant case, the impugned products, as per the applicant, are woven fabrics having width less than 30 cm; Taffeta rolls made up of polyester yam with acrylic coating to protect from raveling or fraying and also to have better printing quality; Satin rolls made up of polyester yam, with optical or non-optical coating for brightening and to remove impurities, having plain selvedges on both sides of the fabric; cut with hot blades to arrest fabric fraying. Thus the impugned products qualify to get covered under Narrow Woven Fabrics . The tariff heading 5806 covers the woven fabrics that are not covered under heading 5807 consisting of warp without weft assembled by means of an adhesive (Bolducs). It is an admitted fact that the impugned products are woven products consisting of warp and weft and are not assembled by means of an adhesive. Thus the impugned products are not covered under tariff heading 5806. The impugned products are narrow woven fabrics, made up of manmade fibres i.e. Polyester yarn and thus are squarely covered under tariff heading 5807 10 20. Therefore the impugned products merit classification under tariff heading 5807 10 20.

Summary

Issues:
Classification of products "Satin Rolls" and "Taffeta Rolls" with sizes between 19mm to 40mm under the CGST and KGST Acts.

Analysis:
1. Admissibility of the Application: The issue falls under "classification of any goods or services or both" and is admissible under Section 97(2)(a) of the CGST Act.

2. Brief Facts: The applicant, a proprietary concern dealing in label rolls for garment wash care labels, sought advance ruling regarding the classification of "Satin Rolls" and "Taffeta Rolls" under different GST rates based on vendors' classification.

3. Interpretation of Law: The applicant did not provide a specific interpretation of the law related to the classification question.

4. Comments by Legal Cell: The Legal Cell noted that the products are not assembled with adhesive, indicating they do not fall under tariff heading 5806. Based on technical specifications, the products are classified under tariff heading 5807, attracting 12% GST.

5. Personal Hearing: The applicant's representative reiterated the products' details and argued for classification under HSN 5807 during the personal hearing.

6. Findings & Discussion: The ruling authority considered the submissions, applicant's products, and additional information provided. The products were described in detail, including the manufacturing process and materials used.

7. Classification Examination: The authority examined the Customs Tariff Act and WCO Explanatory Notes to determine the classification. The products qualified as "Narrow Woven Fabrics" under Chapter 5806.

8. Tariff Headings Analysis: The authority concluded that the products did not fall under tariff heading 5806 but were appropriately classified under tariff heading 5807 10 20 for woven fabrics made of manmade fibers.

9. Ruling: The final ruling classified the products "Satin Rolls" and "Taffeta Rolls" with sizes between 19mm to 40mm under tariff heading 5807 10 20, attracting 12% GST.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved and the authority's decision regarding the classification of the products under the CGST and KGST Acts.