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TMI Blog2019 (8) TMI 1215X X X X Extracts X X X X X X X X Extracts X X X X ..... als that a woven fabric if completely embedded in plastics or entirely coated or covered on both sides with such material, and if such coating or covering can be seen with the naked eye, is not to be treated as textile material for classification under the Tariff Act (refer to the Explanatory Notes to Chapter 39 of the Harmonised System of Nomenclature, Brussels). Tarpaulin made from HDPE woven fabric of the variety the Applicant supplies, therefore, is not tarpaulin made from textile material, and not to be classified under Heading 6306. The tarpaulin the Applicant supplies is made from HDPE woven fabrics, coated or covered with LDPE melt. Heading 5903 and Note 2 to Chapter 59 are relevant for ascertaining whether the above fabric is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seeks a ruling on whether HDPE Woven Tarpaulin is classifiable as textile under Section Xl of the First Schedule of the Customs Tariff Act, 1975 (hereinafter the Tariff Act) and, if so, whether it is classifiable under HSN 6306, 6301 or 5903 of the Tariff Act. 1.2 Advance Ruling is admissible on this question under Section 97(2) (a) of the GST Act. 1.3 The Applicant further submits that the question raised in the Application is neither decided by nor pending before any authority under any provisions of the GST Act. The concerned officer from the Revenue, however, points out that this Authority has already decided the question concerning another application, and the decision is confirmed upon appeal. Therefore, the Appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted. 2. Submissions of the Applicant 2.1 The Applicant submits that it manufactures tarpaulins made from HDPE woven fabrics. Tarpaulins made from HDPE woven fabric, according to the Applicant, are different from plastic tarpaulins. The former is derived by weaving method using power looms after textile processing, and the latter are hot-pressed plastic sheets, cut to shapes and stitched. 2.2 The manufacturing process, as described by the Applicant, involves manufacturing of HDPE tapes, which are weaved into a piece of fabric. The Applicant purchases HDPE granules, which are mixed with additives and passed through an HDPE tape line plant to obtain HDPE tapes conforming to IS 6192: 1994 (mono-axially oriented H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, covered or laminated with plastics or articles thereof, of chapter 39. 2.6 The Applicant submits that mere impregnation, coating, covering or lamination with plastic cannot be the sufficient reason for excluding tarpaulins made from HDPE woven fabric from HSN 6306, which specifically includes tarpaulins made from synthetic fibre or other textile materials. 2.7 The Applicant further submits that Chapter 59 includes textile fabrics impregnated, coated, covered or laminated with plastics (HSN 5903). The Applicant s supply may also be considered under Chapter 59, if not under Chapter 63. 2.8 The Applicant also submits that an item manufactured from plastics cannot be termed as plastics, as plastic loses its iden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pe of the discussion. 3.2 Headings 3901 to 3915 include plastics in its primary forms and plastic wastes. Headings 3916 to 3926 include article made of plastics. Tarpaulin is classified as an article made of plastics and classified under Tariff item 3926 90 99. Tarpaulin made from textile material, however, is separately classified under Heading 6306. It, therefore, needs to be ascertained whether HDPE woven fabric, impregnated, coated, covered or laminated is textile material. 3.3 Tarpaulin made from HDPE woven fabric is a composite of plastics and textile. It combines a plastic component with textile material. Classification of such composite goods is governed by Note 1 (h) to Section Xl (Textile and Textile Articles) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the variety the Applicant supplies, therefore, is not tarpaulin made from textile material, and not to be classified under Heading 6306. Moreover, this Authority has ruled on an earlier occasion that tarpaulin made of HDPE woven fabric is not classifiable under HSN 6306. The Appellate Authority has confirmed the ruling. The only aspect of the Applicant s questions that needs to be decided, therefore, is whether such a tarpaulin is classifiable under Headings 6301 or 5903 of the Tariff Act. 3.6 The tarpaulin the Applicant supplies is made from HDPE woven fabrics, coated or covered with LDPE melt. Heading 5903 and Note 2 to Chapter 59 are relevant for ascertaining whether the above fabric is textile material. Had it been so, the tarp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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