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TMI Blog2018 (11) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent as to why and how the Tariff Heading is now sought to be changed from 3923 29 90 to 6305 33 00. Since the Respondent declared that Polypropylene Leno Bags manufactured by weaving polypropylene strips (tapes) under Tariff Heading 3923 29 90 for claiming duty drawback, and no explanation could be offered as to why the Tariff Heading should be changed now to 6305 33 00, it is not permissible under the doctrine of equitable estoppels that the Respondent is allowed to take such a divergent stand now. Ruling:- The item Polypropylene Leno Bags (PP Leno Bags) manufactured by the respondent be classified under Tariff Heading 39232990. - Case No. 06/WBAAAR/Appeal/2018 - - - Dated:- 25-10-2018 - RANDHIR KUMAR AND RAKESH KUMAR SHARM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on with plastics, are to be classified under Tariff Sub-Heading 6305 33 00. 4. The Appellant has filed an Appeal against the above Advance Ruling requesting to set aside/ modify the impugned Advance Ruling passed by the Authority for Advance Ruling or pass any such further or other orders as may be deemed fit and proper in the facts and circumstances of the case on the following grounds: i) The Respondent had themselves declared that they manufacture woven sacks of plastic materials of Chapter 39. The learned Advance Ruling Authority referred to Note 1(h) to Section XI of the Tariff Act which covers textile and textile articles from Chapter 50 to 63 and does not include woven, knitted or crocheted fabrics of Chapter 39 , and hence t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ff Heading for the same product, PP Leno Bags, to 6305 33 00 without citing any reasons for the same. The Appellant also submitted that the rule of estoppel by election is applicable in the matter as the Respondent themselves declared the item in question under Tariff Sub-Heading 3923 29 90 and enjoyed the duty draw back as per Duty Drawback Schedule of DGFT. The Appellant further submitted that the same product cannot be cleared for export and in DTA under two different Tariff Headings. 6. During the course of the hearing, the Respondent submitted the following: (i) Manufacturing process includes manufacturing of polypropylene strips (tapes) which is woven to produce man-made textile material which is commercially known as Leno Fabr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (vii) The polypropylene leno bags for packing of agricultural produce is internationally classified under HSN code 63053300 . 7. The Respondent submitted copies of the reports of test conducted by the Central Institute of Plastics Engineering Technology, Haldia, dated 15.03.2018, the Indian Institute of Packaging, Kolkata, dated 27.03.2018 and Indian Oil Corporation Ltd., Panipat, dated 12.03.2018 on his samples of PP Woven Leno Bags. These test reports arc based on samples provided by the Respondent. It is also seen that in the reports of Central Institute of Plastics Engineering Technology and the Indian Institute of Packaging i.e. Test Reports dated 15.03.2018 and 27.03.2018, respectively, it is stated that the reports are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaving the aforesaid HDPE woven sacks has to be classified as an Item under entry 39.20 of Chapter 39 and not under entry 54.06 of Chapter 54. Accordingly the entries of the finished goods have also to be made under the proper Chapter of the Tariff Act treating them as the finished goods made of plastic strips. In the result we hold that HDPE strips or tapes fall under the Heading 39.20, sub-heading 3920.32 of the Central Excise Tariff Act and not under Heading 54.06, sub-heading 5406.90. Similarly the HDPE sacks fall into Heading 39.23, sub-heading 3923.90... 11. The West Bengal Authority for Advance Ruling failed to take note of the aforesaid judgment of the Hon'ble Madhya Pradesh High Court which is squarely applicable in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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