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TMI Blog2018 (9) TMI 1770X X X X Extracts X X X X X X X X Extracts X X X X ..... for 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. To classify the product PP Leno Bags both the Explanatory Notes, as well as the clarifications in the Tariff, and the specifications as per IS 16187:2014 should be taken into consideration - Tariff head 63053300 includes the goods that are classifiable as sacks and bags, of the kind used for packing of goods, made from polyethylene or polypropylene strips and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation states that the Applicant manufactures Polypropylene Leno Bags which are mainly used for packing of potato, onion, raw mango and other vegetables and citrus fruit in bulk. The Applicant also manufactures other woven Polypropylene bags which may be used for packing of cement, fertiliser and food grain. Ruling is, however, sought for the Polypropylene Leno Bags. The composition of these Polypropylene Leno Bags is i) Polypropylene (hereinafter referred to as PP ) - 92% to 94%, ii) Linear Low Density Polyethylene (hereinafter referred to as LLDPE ) - 3% to 5% and iii) Colour Master Batch - 3% to 4%. The raw materials, namely, PP, LLDPE and Colour Master Batch, along with Additives, are fed into the Extrusion Tape line and the extruding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09.05.2018 cannot be used for litigation, the above references will not be considered when at the Ruling. 4. The Applicant has also submitted a communication from Oriental Bank of Commerce dated 15.06.2018 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 557.36 lacs in 2009. 5. There is no specific Tariff Code for PP Leno Bags and/or Leno Bags. In the context of textiles the word Leno refers to a particular kind of weave in which the warp yarns are twisted together in pairs between the wefts of filling ya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapters 50 to 63 does not include, Monofilament of which any cross-sectional dimension exceeds 1 mm or strip or the like (for example, artificial straw) of an apparent width exceeding 5 mm, of plastics (chapter 39), or plaits or fabrics or other basket-ware or wickerwork of such monofilament or strip (chapter 46) Note 1 (h) to Section XI of the Tariff Act states that the Section of Textile and Textile Articles covering Chapters 50 to 63 does not include, Woven, knitted or crocheted fabrics, felt or nonwovens, impregnated, coated, covered or laminated with plastics, or articles thereof, of chapter 39 8. Thus, to be included in Chapter 63, the width of the tapes, manufactured from Plastics or articles thereof of Chapter 39, used to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct PP Leno Bags both the Explanatory Notes, as well as the clarifications in the Tariff, and the specifications as per IS 16187:2014 should be taken into consideration. 13. Tariff head 63053300 includes the goods that are classifiable as sacks and bags, of the kind used for packing of goods, made from polyethylene or polypropylene strips and the like that qualifies as man-made textile materials. Only those PP strips and the like are considered as textile materials width of which do not exceed 5 mm [refer to Note 1(g) to Section XI of the Tariff Act]. 14. The above-mentioned Tariff head is not applicable if the sacks made from PP woven fabric are impregnated, coated, covered or laminated with plastics or articles of plastics covered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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