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TMI Blog2021 (3) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... code 63059000 and to be taxed at 18% not at 5%. - 01/Puducherry-AAR/2020-21 - - - Dated:- 18-11-2020 - SHRI N. RAMKUMAR, AND SHRI S. MANICKADEEPAN, MEMBER Present for the Applicant : Mrs. Julie Ernestine Marie T, Admin Commercial Manager. Subject: GST Act,2017-Advance Ruling U/s 98 on Classification and rate of GST on PP Non-woven bags. We would like to make it clear that the provisions of both the Central Goods and Services Tax Act, 2017 ( CGST Act ) and the Puducherry Goods and Services Tax Act, 2017 ( PGST Act ) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the PGST Act. 2. M/s. TEXBOND NONWOVENS, No.A 27-30, PIPDIC Electronic Park, Thirubuvanai, Puducherry- 605 107 (hereinafter referred to as the 'Applicant') are engaged in the manufacture of various products falling under Chapter 56 63 of HSN and registered under GST having GSTIN 34AAEFT3643C1ZJ has filed an application on 23.05.2019 under section 97 of the CGST Act and the PGST Act, read with rule 104 of the Central Goods and Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able and Excellent breathability. It has air and water permeability - Does not block drainage Photo Degradable (Degrades under exposure to sunlight) Chemically inert, Nontoxic- burning does not produce any poisonous gases or (DKTE). 5.2. The applicant also had furnished a copy of the certificate from DKTE- Textile Engineering Institute for Non-woven, which list the above characteristics and the applicant also mentioned that the DGFT have incorporated Non-woven with HSN 5603 under Technical Textile items vide Notification No. 54/2015-2020 Dt. 15.1.2019 and furnished copy of the same and that globally all countries are using HSN Code 5603 for all the exports and imports of PP Spunbond Non-woven fabric and 6305390010 for sacks and bags, of a kind used for the packing of goods, Of man-made textile materials Other Non-wovens 5.3. The applicant stated that there is a misconception or myth created in general for Non-woven being considered as just another plastic, because the raw material (i.e., Polypropylene ) is same for Non-woven and plastic. But the fact is, due to difference in the process and characteristic of the end product, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for 'classification of PP Non-woven Bags'. The applicant have stated that they are manufacturers of polypropylene Spunbonded Non-woven fabrics (manmade textiles) falling under HSN 5603 (Nonwovens, whether or not impregnated, coated, covered or laminated) and its Articles - Garments under HSN 6210 (Garments, Made Up Of Fabrics Of Heading 5602, 5603, 5903, 5906 OR 5907) and bags under HSN 6305 (Sacks And Bags, of a kind used for the packing of goods-man-made textile materials). 6.2. It is pertinent to mention that the issue to be taken for consideration by this Advance Ruling Authority is 'classification of PP Non-woven Bags' and hence the question of looking into the significance/advantages of using the material over others and deliberating the characteristics of the material based on the certificates issued by certifying agencies, the scope for growth of demand for the material globally due to various advantages even though may be true but are not relevant to this forum. Therefore, the issue in hand is only the determination of 'classification of PP Non-woven bags'. 6.3. In the subject case, the applicant is manufacturing PP Non-woven bags, made from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue of classification of Polypropylene woven and Non-woven bags, the following point was clarified: Para 7.4 Polypropylene woven and non-woven bags and PP woven and non-woven bags laminated with BOPP falls under HS code 3923 and attracts 18% GST rate. Para 7.5 Non-laminated woven bags would be classified as per their constituting materials. 8. In this regard the extracts of the Order No.05/ODISHA-AAR/2018-19 dated 16.11.2018 passed by the Odisha Authority for Advance Ruling in the application filed by M/s. Utkal Polyweave Industries (P) Ltd., 26-Ganeswarpur Industrial Estate, Januganj, Balasore-756019, Odisha are furnished below as the issues involved are same,- 4.5 The applicant has placed reliance on order no. 09/WBAAR/2018-19 dated 06.07.2018 of the West Bengal Authority for Advance Ruling, Goods and Service Tax in the case of M/s Mega Flex Plastic limited, Howrah , wherein, the authority, classified PP Leno bags under Tariff sub heading 63053300. The aforesaid ruling of the West Bengal Authority of Advance Ruling has, in the meanwhile, been reversed by the West Bengal Appellate Authority of Advance Ruling in the Appeal Case No.06/WBAAAR/Appeal/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifiable under Chapter 63. As observed above and also as decided by the West Bengal Appellate Authority of Advance Ruling, PP Leno Bags are classifiable under heading 39232990 and not under 63053300. It is a fact that both the headings bear reference to Sacks and Bags but, in view of the exclusion in the Chapter Note 1(h) appearing under Chapter XI, Woven Fabrics and articles thereof specified under Chapter 39 are not to be covered by the articles mentioned against the heading 63053300. 4.8 Further, as per the existing CBEC Revised Duty Drawback rates schedule applicable w. e. f. 01.10.2017, polypropylene woven fabrics/bags/sacks, whether or not laminated, with or without U. V. stabilization, with or without liners/fasteners are specifically classified under drawback chapter 39 under Tariff Item 392302.The item under consideration being woven bags of polypropylene therefore merits classification under this Chapter as it stands today without any ambiguity. . 9. In view of the above Order No.05/ODISHA-AAR/2018-19 dated 16.11.2018 passed by the Odisha Authority for Advance Ruling and also the order of the West Bengal Appellate Authority of Advance Ruling in the Appeal Case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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