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TMI Blog2019 (10) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... ss to be used as pond liner. The said Laminated Coated Fabrics is used for technical purpose and is specifically covered under scope of Heading 5911 10 00. The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. According to Rule 3(a), a heading which provides the most specific description shall be preferred to heading providing a more general description. The Laminated High Density Poly Ethylene HDPE Woven Geomembrane for water proof lining - IS:15351:2015 , made from HDPE Tapes/Strips of less than 5 mm and specially woven fabrics from the said HDPE Tapes/ Strips and subjected to LDPE Coating and Lamination referred as Sandwich Lamination and further fit for using as pond liner laminated textiles products and correctly classifiable under HSN Code 5911. - Advance Ruling F. No. V/AR-01/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ominantly used for agricultural sector. The applicant is a leading manufacturer of the products namely Geo Membrane for Water Proof Lining-Type-ll as per IS:15351:2015 which is used for Water Proof Lining of Ponds. Canals and Other Water storage places. The said products are also referred as Pond Liners and are specific Laminated High Density Polyethylene Woven Geo-Membrane for water proof lining which is manufactured specifically as per Indian Standard prescribed under IS:15351:2015 and are used primarily for farming water and as liners for water ponds, canals, water pits, etc., for storage of water bodies. In the States with scanty rain falls, the said pond liners are primarily used for the agricultural sector for water preservation. 3. Defence Submissions : The applicant came forward before us with the issue for deciding as to whether the product under reference i.e. Laminated High Density Poly Ethylene HDPE Woven Geomembrane for Water Proof Lining Type-II, IS:15351:2015 which are also known as 'agro textiles' or ' Geomembranes ' used for water proof lining, would be correctly classified under HSN Code 5911 10 00 as Text ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are then extruded through circular die to produce blowing film which further uniformly passed through take up roller to get the required film width micron. Tubular film is made on surface winder it flatten with help of guide roller. Lamination Coating : The HDPE woven fabric is laminated on both sides with LDPE with suitable combination of LLDPE. The coating film is UV stabilized by incorporating 2.5 0.5 per cent of carbon black with uniform dispersion. HDPE woven fabric is bonded with single side LDPE coating. Similarly other side of the fabric is bonded together by sandwich lamination. For sandwich lamination, HDPE woven fabric is bonded with LDPE coating and LDPE liner film. The roll is ready for sealing process. Sealing : Two or more pieces of geomembrane fabrics are used, the Geomembrane are joined/ seamed together by a suitable heat air blower sealing process keeping an overlap as per standard sealing process . 3.2.1 On perusal of the above manufacturing process it would be observed that the Geomembrane for water proof lining comes into existence in three stages namely : (A) Tape Extrusion Stage, wherei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. This Section does not cover : (a) . (g) 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) . From the above Section Note 1(g) to Section XI, it would be observed that Plastics Strips of width less than 5 mm shall be covered under Section XI which covers Chapter 50 to Chapter 63 of HSN. (iii) They referred to Chapter 54 which covers Manmade Filaments; Strip and the like of Manmade Textile Materials . In other words the said Chapter 54 covers products of Manmade Filaments as well as Strips and other manmade textile material. (iv) They further referred to Heading 5404 which reads as under : 5404 - Synthetic monofilament of 67 decitex or more and of which no cross section dimension exceeds 1 mm; Strip and the like (for example artificial straw) of Synthetic textile materials of an apparent width not exceeding 5 mm They referred to the said Heading 5404 whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed above and brings into existence Geomembrane pond lining fabrics which is a textile fabrics of a kind used for technical purposes. The said Industrial Technical Fabrics are supplied in piece form or are in cut to length as per the specification of the customer and supplied in pieces and are covered under Heading 5911, for which they refer to the following : (i) Chapter Note 7 to Chapter 59 of Tariff/HSN visualizes the scope of Textile Fabrics covered under Heading 5911 for technical purposes as under : 7. Heading 5911 applies to the following goods, which do not fall in any other headings of Section XI : (a) Textile products in the piece, cut to length or simply cut to rectangular (including square) shape (other than those having the character of the products of Heading 5908 to 5910), the following only : (i) Textile fabrics, felt and felt line woven fabrics, coated, covered or laminated with-rubber, leather or other materials, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tile Material which is subjected to LDPE Coating and Lamination referred as Sandwich Lamination. After the said process two or more pieces of said Sandwiched Laminated Geomembrane fabrics are joined/ seamed together by a suitable heat air blower sealing process keeping into the requirement of the customer based on which the said fabrics are cut and joint and cut sealed as per standard sealing process to be used as pond liner. The said Laminated Coated Fabrics is used for technical purpose and is specifically covered under scope of Heading 5911 10 00 as enumerated above. 3.4 They submitted that the said product cannot be covered under Chapter 39 as it is specifically made from Textile Material as per the scope of Heading 5404 and Woven into Fabrics of 5407 and the specially coated and laminated fabrics duly fabricated by Heat sealing brings into existence the technical fabrics of Heading 5911. The said Chapters 54 59 is covered under Sec. XI of the HSN and the said products are excluded from the scope of Chapter 39 of the Tariff. The applicants refer to Chapter Note-2(p) to Chapter 39 which clearly enumerates that this Chapter does not cover, Goods of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the sub-heading under 3926. 3.7 In addition to the above submissions, the applicants wish to refer and rely on the following Notifications and Circulars which substantiate that the relevant Government authorities also considered the said product i.e. Laminated High Density Poly Ethylene HDPE Woven Geomembrane for water proof lining IS:15351:2015 , as Textile Fabrics for technical purposes and technical uses and is considered as a part of Textile Industry and not as a part of Plastic Industry. The applicants wish to refer and rely on; (a) Notfn. No. 54/2015-2020, dated 15-1-2019 issued by the Directorate General of Foreign Trade, Department of Commerce, Ministry of Commerce and Industry, GOI, as per the power conferred under sec. 5 of F.T. (D R) Act, 1992 read with Paras 1.02 and 2.01 of FTP, 2015-2020, wherein they had incorporated list of 207 items as technical textiles. The said Notification covers the above referred products of Heading 5911 10 00 at Sr. No. 138. The said product is recognized by the DGFT as Technical Textiles. (b) A Publication made by the Ministry of Textiles, Govt. of India, titled as Government of India's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sacks respectively. None of the said High Courts had an opportunity to evaluate the classification under Heading 5911 for Textile Fabrics duly laminated and coated with plastics for technical purpose and technical uses as enumerated above. Accordingly the said High Court decisions cannot be applied to the facts of the case. 3.11 Without prejudice to the above, the applicant further submitted that the period before both the Hon'ble High Courts were 1988-89 1989-90, wherein the scope of Chapter 54 was different as compared to the scope of Chapter 54 under HSN and GST. 3.12 During the period before the Hon'ble High Court i.e. 1988-89 and 1989-90, Chapter 54 was covering only Manmade Filament and there was no provisions for covering strips of width less than 5 mm under Heading 54.04. The said Heading 54.04 read as : 54.04 - Artificial Filament Yarn and sewing thread, including artificial mono-filament of less than 60 denier, not texture . 3.12.1 However, under HSN and the GST Tariff as on now, the Chapter 54 covers Manmade Filaments; Strip and the Like of Manmade Textile Material and there is specific inclusion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring before us. He submitted sample of the product manufactured by them alongwith supporting literature. Further he argued that the raw material used for the product is LDPE and its further process is to convert into tape to fabrics which is later on laminated. In the market their product is used for lining of Pond and water bodies. They further contested that their product is laminated fabrics, hence, falls under Ch. 59 instead of 39 of GST Tariff and requested that their application may be decided accordingly. 5. Discussion and Findings : 5.1 In the present case we have to decide the correct classification of the material goods in question i.e. Laminated High Density Poly Ethylene HDPE Woven Geomembrane for water proof Lining Type-Il, IS:15351:2015 , as to whether is classifiable under HSN Code 5911 10 00 or as Article of Plastics under HSN Code 3926 90 99. The applicant have paid required fee vide Challan Number CIN 19052600006524, dated 30-5-2019 for seeking of Advance Ruling for the said product. Now, we the members of Advance Ruling, have to decide as to whether the goods Laminated High Density Poly Ethylene HDPE Woven Geomembrane for water pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduce blowing film which further uniformly passed through take up roller to get the required film width micron. Tubular Film is made on surface winder it flatten with help of guide roller. 5.2.4 Fourth stage of manufacturing of the product in question is Lamination Coating. The HDPE woven fabric is laminated on both sides with LDPE with suitable combination of LLDPE. The coating film is UV stabilized by incorporating 2.5 0.5 percent of carbon black with uniform dispersion. HDPE woven fabric is bonded with single side LDPE coating. Similarly other side of the fabric is bonded together by sandwich lamination. For sandwich lamination, HDPE woven fabric is bonded with LDPE coating and LDPE liner film. The roll is ready for sealing process. 5.2.5 The final stage of the product in question is Sealing. The two or more pieces of geomembrane fabrics are used, the geomembrane are joined/ sealed together by a suitable heat air blower sealing process keeping an overlap as per standard sealing process. 5.3 In view of the above we the members of Advance Ruling find that the main product around which the whole process of manufacturing revolves is HD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er : 1. Throughout this schedule, the expression plastics means those material of Heading 3901 to 3914 which am or have been capable, either at the movement of polymerization or at some subsequent stage, of being formed under external influence (usually heat and pressure; if necessary with a solvent or plasticizer) by moulding, casting, extruding, rolling or other process into shapes which are retained on the removal of the external influence. Throughout the schedule any reference to plastics also includes vulcanized fibre. The expression, however, does not apply to materials regarded as textile material of Section XI . 6.2 On perusal of the above Chapter Note 1 to Chapter-39, it is amply clear that the textile materials of Section XI are excluded from the scope and terms of plastics for the said chapter and the HDPE Tapes and Fabrics are covered under Section XI and they are out of the scope of Chapter 39 and accordingly the same cannot be covered under the scope of Heading 3926 of the HSN. 7. Now we discuss the flow of classification for the above products which are arising during the course of manufacturing. The first product which co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams); Bolting doth, whether or not made up; whether or not impregnated or coated, of a kind commonly used in other machines, Cotton fabrics and articles used in machinery and plant, Jute fabrics and articles used in machinery and plant, Textile fabrics of metalized yarn of a kind commonly used in paper making or other machinery, Straining cloth of a kind used in oil presses or the like, including that of human hair, Paper maker's felt, woven, Gaskets, washers, polishing discs and other machinery parts of textile articles 5911 10 00 - Textile fabrics, felt and feltlined woven fabrics, coated, covered or laminated with rubber, leather or other material, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams) 7.3 On perusal of the above , it is observed that the, Laminated High Density Poly Ethylene HDPE Woven Geomembr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tariff and not as per trade parlance and commercial understanding. Trade parlance was to be examined only if the tariff entry is ambiguous - Nirlon Synthetic Fibres v. UOI - 1999 (110) E.L.T. 445 (Bom.) or if the statute did not define the words - Indo International Industrial v. CST - 47 STC 359 (S.C.) = 1981 (8) E.L.T. 325 (S.C.). 8.1 We further note that the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. According to Rule 3(a), a heading which provides the most specific description shall be preferred to heading providing a more general description . Collector v. Metrowood Engineering Works - 1989 (43) E.L.T. 660 (Tri.). When an article has by all standards, a reasonable claim to be classified under an enumerated item in the CET, it will be against the very principle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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