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TMI Blog2020 (6) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court of Madhya Pradesh is crystal clear and squarely applicable in the present case, the goods in question are being held as classifiable under Chapter 39 of the GST Tariff and not 6305 of the GST Tariff. - GUJ/GAAR/R/01/2020 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2018/AR/27) - - - Dated:- 11-3-2020 - MOHIT AGRAWAL AND SANJAY SAXENA MEMBER Present for the applicant : K.J.Gandhi. BRIEF FACTS: The applicant is an LLP concern and manufacture BOPP (Biaxially Oriented Polypropylene) Laminated PP Woven Sacks which was used in packaging industries. They submitted process of their products in a Chart as below: POLYPROPYLENE /POLYMER RESINS ----EXTRUDER---- TAPES---- LOOMS--- UNLAMINATED FABRIC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of Chapter 63 wherein it was specifically mentioned that Sacks and bags, of a kind used for the packing of goods Other, of polyethylene or polypropylene strip or the like fall under Chapter 6305 3300 and they manufacture sacks which are made out of polypropylene. They also submitted that as per guidelines of the The Institute of Chartered Accountants of India regarding Classification of mixtures/combinations of a material/substance with other materials/substances as per Rule 3(a) under Classification in case Goods are Classifiable Specific over General , that the heading that provides a more specific description should be preferred over the heading that provides a general description. 5. They therefore requested for guideline for cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note to Chapter 39, the expression plastics means those materials of headings 39.01 to 39.14 which are or have been capable, either at the moment 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. 7.4 Thus it is clarified that Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP would be classified as plastic bags under HS code 3923 and would attract 18% GST. 7.5 Non-laminated woven bags would be classified as per their constituting materials. 8.2 Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icial silk or other fibre, and includes fibre . Therefore, according to the above definition, any fabric or cloth or yarn or garment if made wholly or in part of cotton, wool, silk, artificial silk or other fibre shall be called textiles. The definition of fibre includes the regenerated cellulose, rayon, nylon and the like. Nowhere in the aforesaid definition of fibre or textiles plastic has been mentioned as a commodity to be included in the definition of fibre or textiles . Now in Shree Radhe Industries case (supra) and the Shellya Industries case (supra) irrespective of the entries in the tariff as prevailing then, it has been held that the HDPE sacks are articles made of plastic; they are made of high density polyethylen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng them as the finished goods made of plastic strips. In the result we hold that HDPE strips or tapes fall under the Heading 3920, Sub-heading 3920.32 of the Central Excise Tariff Act and not under heading 5406, sub-heading 5406.90. Similarly HDPE Sacks fall into heading 3923, Sub-heading 3923.90 . 9.2 The Advance Ruling Authority of Madhya Pradesh also relied on the judgment of the Hon ble Tribunal in the case of M/s Gujrat Raffia Industries Ltd., V/s Commissioner of Central Excise on 14.1.2003 [Reported in 2003 (153) ELT 336 (Tri-Dell] = 2003 (1) TMI 146 - CEGAT, NEW DELHI wherein, the Hon ble Tribunal in the matter had also held classification of similar goods under chapter 39 instead of chapter 63. 10. Since the decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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