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TMI Blog2018 (12) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... d Bags but, in view of the exclusion in the Chapter Note I(h) appearing under Chapter X’, Woven Fabrics and articles thereof specified under Chapter 39 are not to be covered by the articles mentioned against the heading 63053300 - Further, as per the existing CBEC Revised Duty Drawback rates schedule applicable w.e.f. 01.10.2017, “polypropylene woven fabrics/bags/sacks, whether or not laminated, with or without C.V. stabilization, with or without liners/fasteners” are specifically classified under drawback chapter 39 under Tariff Item 392302 - The item under consideration being woven bags of polypropylene therefore merits classification under this Chapter as it stands today without any ambiguity. Ruling:- The item “Polypropylene Leno Bags (PP leno Bags)”, be classified under GST Tariff Heading ‘3923 29 90’. - Order No. 05/ODISHA-AAR/2018-19 - - - Dated:- 16-11-2018 - SRI ANAND SATPATHY, AND SRI NILANJAN PAN, MEMBER Present for the Applicant: Shri Vinay Kumar Shraff, Advocate. Shri B. Maharana, Asst Manager (Com) of the Company Subject: GST Act, 2017-Advance Ruling U/s 980n Classification of Polypropylene Leno Bags 1.0 M/s. Utkal Polyweave Industries (P) Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) 2.5 That 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 . It is also submitted that, to be included in Chapter 63, the width of the tapes, manufactured from Plastics or articles thereof of Chapter 39, used to weave the fabric should be fess than or equal to 5mm and should not be impregnated, coated, covered or laminated with plastics or articles thereof, of chapter 39. 2.6 That it satisfies both the above criteria to be eligible to classify their product under Tariff code 63053300. 3.0 The Personal Hearing was fixed on 09.10.2018. Shri Vinay Kumar Shraff, Advocate appeared for personal hearing and represented on behalf of the company. He re-iterated the earlier submission made in the application. During personal hearing, it was reported that earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Woven Sacks for packaging and storage of fruits and vegetables. 4.2 Notwithstanding the aforementioned certification by different certifying agencies, the issue for consideration by this forum is simply to determine the relevant HSN Code under which the goods manufactured by the applicant for supply is classifiable. This forum is not mandated to give any opinion on the standard or manufacturing process of the product manufactured by the applicant. In this regard, the goods manufactured by the applicant might be out of Woven PP Fabrics and might be conforming to the BIS standard, but the standard is not in question to be decided by this forum. In this case, the applicant is manufacturing PP Leno bags as per their declaration and as per their understanding it should be classified as a textile article and are specifically under the Tariff Head 63053300. 4.3 Textile and Textile articles are covered under Section XI of the Customs Tariff which has also been adopted in GST Tariff for the purpose of specification of rate of GST and the rules of interpretation as applicable to the Customs Tariff are also applicable for GST Tariff as well. In Section XI, in notes 1 (h) which reads a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods of plastic and the materials used for weaving those bags being the strips of plastic made from plastic granules, the strips of plastic used for weaving 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 subheading 3920.30 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 4.7 Tariff heading 3923 includes goods that are classifiable as Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics . Polypropylene Leno Bags, as stated by the applicant, are manufactured by weaving polypropylene strips (tapes), Linear Low Density Polyethylene (LLDPE) and Plastic Master Batch. Polypropylene is a wide variety of plastic. LLDPE is a plastic that is softer and more flexible and has lower tensi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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