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2023 (7) TMI 141 - AAR - GSTClassification of proposed product - Geotextile-Stratex - classifiable under Tariff Item (TI) No. 60059000 or under TI 59119032 of the Customs Tariff Act, 1975? - HELD THAT - Chapter 59 covers 'Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use'. Further heading 59.11, covers 'textile products articles, for technical uses, specified in note 8 to this chapter'. Note 8 is already reproduced supra. Delving further it is found description knitted or woven Geo technical textile' and tariff items 5911 90 31, 591190 32, 5911 9039 and 5911 9040 which have been introduced in the Customs Tariff wef 1.5.2022 - Tariff Item 59119032 relating to geotextile conforming to IS 16391 and 16392 introduced wef 1.5.2022, is a specific entry. On going through the manufacturing process, end use of StrataTex HSR as is mentioned in the application, it is found that the appropriate classification of the product would be Tariff Item 59119032. The decision is also substantiated by the judgement in the case of MANGALA TEXTILES VERSUS COLLECTOR OF CENTRAL EXCISE, RAJKOT 2000 (3) TMI 134 - CEGAT, COURT NO. IV, NEW DELHI wherein it was held It is the well established Rule of Interpretation that a specific entry will have precedence over general entry.
Issues Involved:
1. Classification of the proposed product "Geotextile-Stratex" under the Customs Tariff Act, 1975. Summary: Issue 1: Classification of the proposed product "Geotextile-Stratex" under the Customs Tariff Act, 1975. The applicant, Strata Geosystems India Pvt Ltd., engaged in the supply of various products under GST, intends to manufacture and supply a new product under the category of 'Go technical textile' named 'Strata Tex HSRO'. The applicant seeks advance ruling on whether the product should be classified under Tariff Item (TI) No. 60059000 or TI 59119032 of the Customs Tariff Act, 1975. The product is described as a fabric manufactured by warp knitting high-grade polyester yarn, not subjected to processes like bleaching, dyeing, coating, covering, impregnation, or lamination. It is proposed to be sold in roll form exceeding 30 cm in width and customized lengths, confirming to IS standards 16391/16392 issued by BIS. The applicant currently classifies the product under 6005 90 00 of CTA '75. However, amendments in the Union Budget for FY 2022-23 introduced tariff item 5911 90 32 for 'Geotextile conforming to IS 16391, IS 16392'. During the personal hearing, the applicant reiterated that the product is a geotextile made from high-end polyester yarn and has applied for BIS certification. The Authority examined the relevant provisions and competing tariff entries. Chapter 60 covers 'Knitted or crocheted fabrics' while Chapter 59 covers 'Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use'. Heading 59.11 applies to 'textile products and articles, for technical uses, specified in note 8 to this chapter'. Note 8 to Chapter 59 states that heading 5911 applies to goods specified therein, provided they do not fall in any other heading of Section XI. The applicant argued that their product does not fall within clauses (i) to (vi) of note 8(a) and qualifies as a textile article under note 8(b) due to its nature and usage. They contended that a specific entry should be preferred over a general entry and that their product is identifiable as a 'geotextile' rather than a warp knit fabric. The Authority reviewed the manufacturing process, end-use, and IS standards related to the product. It concluded that the appropriate classification for StrataTex HSRŽ is under Tariff Item 59119032, subject to obtaining BIS certification as per the amendment in the Customs Tariff Act, 1975. Ruling: The proposed product Strata Tex HSRŽ would be classifiable under Tariff Item (TI) No. 59119032 of the Customs Tariff Act, 1975, subject to the condition that BIS certification is granted as per the amendment in the Customs Tariff Act, 1975.
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