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TMI Blog2021 (1) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... eding 30 cm but not provided with selvedges (flat or tubular) on both edges, is classifiable under sub-heading No. 5407.10.19 of the Customs Tariff Act, 1975. Applicable rate of tax - HELD THAT:- It is to mention that the said product attracts rate of tax of 2.5% CGST + 2.5% SGST as applicable under Sr. No. 217 under Schedule I of Notification No.1/2017-Central Tax (Rate) read with the corresponding notification under the Gujarat GST Act in case of Intra-State supply. Likewise, the applicable rate of tax will be 5% IGST under Sr. No. 217 under Schedule I of Notification No.1/2017-Integrated Tax (Rate) dated 28th June, 2017 in case of Inter-State supply. Thus, the product, Narrow Woven Fabrics of Polyester Yarn of a width not exceeding 30 cm but not provided with selvedges (flat or tubular) on both edges manufactured by the applicant is classifiable under Chapter Sub-heading No. 5407.10.19 of the Customs Tariff Act, 1975, attracting rate of GST @ 5%. - GUJ/GAAR/R/99/2020 - - - Dated:- 14-10-2020 - SANJAY SAXENA AND MOHIT AGRAWAL MEMBER Present for the applicant : Shri Manibhai Raval BRIEF FACTS: M/s Rajivkumar Giriraj Bansal (Proprietor of M/s Gujarat Pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 4.3 Thus, for the purpose of GST, Classification of goods under any tariff item/sub-heading/heading/chapter shall be done using the general rules of interpretation of the First Schedule of the Customs Tariff Act, 1975 including the Section and Chapter Notes and the General Explanatory Notes to the HSN of the fist Schedule of the Customs Tariff Act, 1975. 5. The applicant further submitted that the above explanation is also part of the Notification No.01/2017-State Tax (Rate) and, thus, the above ratio will apply to notifications issued under State GST Law also. 6. As per the general rules of interpretation, a product shall be classified under the heading which provides the most specific description. In case this is not possible and the goods equally merit classification under 2 different chapter headings, then the product will be classified under the heading which occurs last in numerical order among those headings. 7. Narrow woven fabrics are classified under Tariff heading 58.06 of Customs Tariff Act, 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. At the time of personal hearing held through Video Conferencing on 24.09.2020, the Authorised Representative of the applicant, Shri Hasit Dave Advocate reiterated the facts as stated herein above and also submitted the additional submission as below: (i) During the course of personal hearing, it was explained that they are manufacturing Narrow woven fabrics not exceeding 30 cm. and in light of Chapter note 5 of Chapter 58 of Customs Tariff Act, 1976, it has been defined that woven fabrics of a width not exceeding 30cm, whether woven as such or cut from wider pieces, provided with selvedges (woven, gummed or otherwise made) on both edges. Since they are manufacturing woven fabrics by process of weaving from Polyester/Synthetic/Polypropylene Yarn and its width not exceeding 30cm. Thus, the product which manufactured has been specifically covered under Chapter 58063990 and it is correctly classifiable under the said heading which attracts 5% IGST. Even Rule 3(a) of Rules for interpretation of Central Excise Tariff Act, 1944 says that the heading which provide the most specific description shall be preferred to headings providing a more general description. Thus, their product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant, we are required to refer to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 containing the sub-headings as well as the rates of Central GST applicable to various goods, which are covered under 6 Schedules, as below: (i) 2.5 per cent. in respect of goods specified in Schedule I, (ii) 6 per cent. in respect of goods specified in Schedule II, (iii) 9 per cent. in respect of goods specified in Schedule III, (iv) 14 per cent. in respect of goods specified in Schedule IV, (v) 1.5 per cent. in respect of goods specified in Schedule V, and (vi) 0.125 per cent. in respect of goods specified in Schedule VI. Further, Explanations (iii) and (iv) of the said Notification read as under: (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... flat or tubular) on both edges. These articles are produced on special ribbon looms several ribbons often being produced simultaneously; in some cases the ribbons may be woven with wavy edges on one or both sides. (2) Strips of a width not exceeding 30 cm, cut (or slit) from wider pieces of Warp and weft fabrics (whether cut (or slit) longitudinally or on the cross) and provided with false selvedges on both edges, or a normal woven selvedge on one edge and a false selvedge on the other. False selvedges are designed to prevent unravelling of a piece of cut (or slit) fabric and may, for example, consist of a row of gauze stiches woven into the wider fabric before cutting (or slitting), of a simple hem, or they may be produced by gumming the edges of strips, or by fusing the edges in the case of certain ribbons of man-made fibres. They may also be created when a fabric is treated before it cut into strips in a manner that prevents the edges of those strips from unravelling. No demarcation between the narrow fabric and its false selvedges need be evident in that case. Strips cut (or slit) from fabric but not provided with a selvedges either real or false, on each edge, are exclud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but not provided with selvedges (flat or tubular) on both edges, is classifiable under sub-heading No. 5407.10.19 of the Customs Tariff Act, 1975, which reads as under: 5407 WOVEN FABRICS OF SYNTHETIC FILAMENT YARN, INCLUDING WOVEN FABRICS OBTAINED FROM MATERIALS OF HEADING 5404 5407 10 - Woven fabrics obtained from high tenacity yarn of nylon or other polyamides or of polyesters: - Unbleached: 5407 10 19 ---- Other polyester fabrics 20.1 Coming to the applicable rate of tax, it is to mention that the said product attracts rate of tax of 2.5% CGST + 2.5% SGST as applicable under Sr. No. 217 under Schedule I of Notification No.1/2017-Central Tax (Rate) read with the corresponding notification under the Gujarat GST Act in case of Intra-State supply. Likewise, the applicable rate of tax will be 5% IGST under Sr. No. 217 under Schedule I of Notification No.1/2017-Integrated Tax (Rate) dated 28th June, 2017 in case of Inter-State supply. 21. In light of the above discussions, we rule as under RULING Question : Whether narrow woven fabrics manufactured are classifiable under Tariff Heading No. 58063990? Answer : No. The product, Narrow Wove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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