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TMI Blog2019 (3) TMI 1851X X X X Extracts X X X X X X X X Extracts X X X X ..... way of liquid PVC coating. In this manner, the foot mats are made entirely of PVC and is clearly covered under the Sub-Heading 4904 10 which covers Poly Vinyl Chloride, not mixed with any other substances, taxable at 18%. But as per Clause (p) of Note 2 of Chapter 39, goods of Section XI (Textiles and textile articles) are excluded from this chapter. Section XI deals with textiles and textile articles and Chapter 57 (carpets and other textile floor covering) form part of this section. The article manufactured and supplied by the applicant is neither covered under Chapter 57 nor any other chapter of Section XI. As such, the exclusion provided in Clause (p) of Note 2 of Chapter 39 is not applicable in case of the product of the applicant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mattings including Bath Mats, where cotton predominates by weight, of Handlooms, Cotton Rugs of handloom 1.5 In the view of the trade and the experts, an opinion prevails that Chapter Heading 5705 of the Customs Tariff Act, the heading of which reads as Other Carpets Other Textile Floor coverings, whether or not made-up should be the relevant entry. Whether one reads explanatory notes for Chapter 5705 and the fact that for manufacturing PVC car foot mats, the PVC fibres are bonded to each other by way of liquid PVC coating, which functions as an adhesive with this case, in the view of the trade and experts, the product under reference should fall under the explanation given in the HSN explanatory notes for Chapter 57 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct shall be produced at the time of hearing for king consideration of this Hon'ble Court. 1.9 There are many trade associates who that the present product being made from PVC only and hence there should be no doubt that the same would fall in Chapter 39 which covers PVC, a polymer and articles thereof. It also leaves no doubt that the PVC car foot mats are manmade textiles. In the Notification No. 1/2017 in both the Central and the State Tax quoted hereinabove, the Entry 104A (Chapter 3918), Entry 109 (Chapter 3924) and Entry III (Chapter 3926) deals with such products for various purposes and the GST rate is 18% (9% CGST and 9% HGST). 1.10 People in the industry are also relying on HSN 5705- though in the opinion of the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned product and bill of entries showing HSN Code under which the goods are cleared at Customs for information of this Hon'ble Court (Annexure-I). 2. Prayer: 2.1 In view of the above, it is prayed that an Advance Ruling be given for the classification of the impugned product under Chapter 39 or under Chapter 57 and, accordingly, the tax rate as per Notification No. 1/2017 under CGST HGST and further whether the product under reference will attract 9% (CGST) and 9% (SGST) or 6% (CGST) and 6% (SGST) tax or any other rate as may be applicable as per law. 3. Discussion: 3.1 The applicant is a manufacturer and supplier of Poly vinyl Chloride (PVC) foot mats for cars. Chapter 57 of the GST Tariff of goods deals wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 4904 10 which covers Poly Vinyl Chloride, not mixed with any other substances, taxable at 18%. 3.4 But as per Clause (p) of Note 2 of Chapter 39, goods of Section XI (Textiles and textile articles) are excluded from this chapter. Section XI deals with textiles and textile articles and Chapter 57 (carpets and other textile floor covering) form part of this section. The article manufactured and supplied by the applicant is neither covered under Chapter 57 nor any other chapter of Section XI. As such, the exclusion provided in Clause (p) of Note 2 of Chapter 39 is not applicable in case of the product of the applicant. 4. Finding: 4.1 The PVC foot mats manufactured and supplied by the applicant fall under Chapter 39, Sub-Head ..... X X X X Extracts X X X X X X X X Extracts X X X X
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