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TMI Blog2021 (12) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 1/2017-CT (Rate) dated 28.06.2017 (as amended) and Notification No. 1/2017-IGST (Rate) dated 28.06.2017. Advance ruling modified. - GUJ/GAAAR/APPEAL/2021/33 - - - Dated:- 2-11-2021 - J. P. GUPTA AND SEEMA ARORA, MEMBER Present for the appellant : Shri Manibhai Raval At the outset we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 and Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act, 2017 and the GGST Act, 2017 ) are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean reference to the corresponding similar provisions in the GGST Act, 2017. 2. The present appeal has been filed under Section 100 of the CGST Act, 2017 and the GGST Act, 2017) by M/s. Rajivkumar Giriraj Bansal (Proprietor of M/s Gujarat Plast Industries) (hereinafter referred to as Appellant) against the Advance Ruling No. GUJ/GAAR/R/99/2020 dated 14.10.2020. 3. The appellant has raised the following qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded with selvedges on both edges is classifiable under sub-heading No. 5407.10.19 of Customs Tariff Act, 1975 and attracts rate of tax of 2.5% CGST+2.5% SGST in case of Intra-State supply or 5% IGST in case of Inter-State supply. In view of the foregoing, the GAAR ruled as follows:- Question: Whether narrow woven fabrics manufactured are classifiable under Tariff Heading No. 58063990? Answer : No. 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 uynder Chapter Subheading No. 5407.10.19 of the Customs Tariff Act, 1975, attracting rate of GST @ 5% (2.5% CGST+ 2.5% SGST) or IGST @ 5%. 7. Aggrieved by the aforesaid advance ruling, the appellant has filed the present appeal. 8. During the course of personal hearing held on 20.07.2021, the appellant reiterated the submissions made in the appeal dated 27.11.2020. 9. The appellant in the ground of appeal has submitted that the subject goods manufactured by them satisfy the conditions laid by the GAAR, at paragraph 17.1 of the Ruling to classify the subject goods under HSN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record. 14. The main issue here is to decide the classification of the impugned product i.e. narrow woven fabric manufactured and applicable rate of Goods and Service Tax of the product. 15. The appellant in its submission to Gujarat Appellate Authority of Advance Ruling has submitted that they are engaged in manufacturing of narrow woven fabric manufactured by process of weaving from polypropylene yarn in special narrow fabric looms called needle loom and its selvedges are formed by weaving itself . The said product Narrow Woven Fabrics is eligible to be classified under Tariff Heading- 58063990 of Customs Tariff Act, 1975. 16. We find that the classification of goods under GST regime has to be done in accordance with the Customs Tariff Act, 1975, which in turn is based on Harmonized System of Nomenclature, popularly known as HSN . The rules of interpretation, section notes and chapter notes as specified under the Customs Tariff Act, 1975 are also applicable for classification of Goods under GST regime. However, once an item is classified in accordance with the Customs Tariff Act, 1975, the rate of tax applicable would be arrived at on the basis of notifications i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of warp without weft assembled by means of an adhesive (bolducs) 19. From the above, the following are deduced: This chapter heading 5806 covers narrow woven fabrics made from various types of fibres. As per definition of narrow woven fabrics in Chapter Note 5 of Chapter 58, it s width should not exceed 30 cm and it should have selvages on both edges. 20. From the ruling passed by GAAR and submission made by appellant, it is seen that the GAAR in its ruling mentioned that the impugned product is made from polyester yarn on several incidents and the appellant in its submission to Gujarat Appellate Authority of Advance Ruling Submitted that the product is made from polypropylene yarn. Further, in ruling passed by GAAR, it is stated that during personal hearing, Authorised Representative of the appellant submitted that the product is made from polyester/Synthetic/Polypropylene yarn. 21. The appellant submitted that the ruling pass by GAAR is on the premises of the observation however it is not forthcoming from the submission that the product is having selvedges (flat or tubular) on both edges is not sustainable. To the effect, the appellant su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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