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TMI Blog2018 (7) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... determination of classification of goods it is seen that two more factors are to be considered, namely, the width of the tape used in the weaving and whether or not there is a layer/lining in these bags - The specifications of the PP Leno Bags being manufactured by the Applicant, therefore, become an important feature for determining their classification for the purpose of GST. Ruling:- ‘PP Leno Bags’, if specifically made from woven Polypropylene fabric using strips or the like of width not exceeding 5 mm and without any impregnation, coating, covering, or lamination with plastics, are to be classified under Tariff Sub Heading 6305 33 00. - ARN No. 12 of 2018 - 09/WBAAR/2018-19 - Dated:- 6-7-2018 - VISHWANATH AND PARTHASARATHI DE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (tapes). The strips or tapes are then, winded on bobbins which are fed into Weaving Looms from which Woven Leno Fabric is obtained. The Rolls of the Woven Leno Fabric so obtained are then cut into the desired lengths and stitched to form the bags. The Applicant is of the opinion that the PP Leno Bags manufactured is classifiable under Tariff Head 6305 33 00 of the GST Tariff which is aligned to the First Schedule of the Customs Tariff Act, 1975 (hereinafter referred to as the the said Tariff Act ). 3. In Statement dated 01.06.2018 before the Superintendent of Central Tax, Range-III, Sankrail Division. Howrah CGST CX Commissionerate, Shri Hukum Chand Bothra, Director of Mega Flex Plastics Ltd, the Applicant, informed that before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of Packaging that the Test Certificates dated 15.03.2018 and 27.03.2018, respectively, that the reports are not to be reproduced without written approval, and that the report dated 27.03.2018 cannot be used for litigation, the above references will not be considered when at the Ruling. 5. The Applicant has also submitted a communication from State Bank of India dated 29.09.2008 granting 10% capital subsidy under TUFS. The Technology Upgradation Fund Scheme is a scheme under the Ministry of Textiles for providing capital for modernization of Indian Textile Industry at international interest rate. The Applicant has availed of subsidy to the tune of about 22 lakhs in 2008. On being specifically asked the Applicant has admitted during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the very month in which an Advance License was issued to the Applicant for export clearance of goods under Tariff Code 3923 29 90 the Applicant decided to change the Tariff Code for the same product, PP Leno Bags, to 6305 33 00 without citing any reasons for the change. Nor has the Applicant applied to DGFT for any amendment with respect to the Tariff Code. Clearly, the Applicant has been either indulging in supplying the same product in the domestic market and the overseas market by classifying under more than one Tariff Code, in violation of the laws laid down by the Ministry of Finance, or there is a significant difference in the PP Leno Bags which are being cleared for home consumption and which are being exported. It may be pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or specification which may have a bearing on the Tariff Code under which the product is placed. It is, thus, obvious, that to correctly determine the classification of the product explanatory notes and clarifications beyond these Tariff descriptions. 9. Note 2(p) of Chapter 39 of the GST Tariff (Plastics and articles thereof) does not cover goods of Section XI (textiles and textile products). There is no other criterion stated to exclude goods from being included as Plastics and articles thereof vis-a-vis Chapter 63. Again, Note 1(g) to Section XI of the Tariff Act states that the Section of Textile and Textile Articles covering Chapters 50 to 63 does not include, Monofilament of which any cross-sectional dimension exceeds 1 mm or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classification for the purpose of GST. 13. IS 16187:2014 issued by the Bureau of Indian Standards specifies that, PP Leno Woven sacks for packaging and storage of fruits and vegetables should have range of width from 2.0 to 2.5 mm. IS 9755:2003, IS 14887:2014, IS 11652:2000 issued by the Bureau of Indian Standards lays down specifications for packing fertilizers, food grains and cements respectively, and it is seen that these bags are for PP Woven Sacks and not for PP Leno Woven sacks. Since, the Ruling sought for is specifically for PP Leno Bags, the BIS for fruits and vegetables is considered solely. 14. Therefore to classify the product PP Leno Bags both the Explanatory Notes, as well as the clarifications in the Tariff, and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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