9911796707
TMI Blog2023 (9) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... 810 mm. However, there is only one item in the list of products having width exceeding 300 mm, namely Iron on Taffeta Roll - 305 mm . It is submitted by applicant that the CTH 5807 10 does not require a label to be printed for classification under the heading. Further, there is no such requirement in the chapter and section notes. In support of this argument the applicant has further submitted that the Hon ble Calcutta High Court in the case of BIJAY KUMAR PODDAR VERSUS UNION OF INDIA [ 1999 (9) TMI 106 - HIGH COURT AT CALCUTTA] has held the plain label strips as labels considering that it is meant for printing and there is no alternate use of the same. The related sub-heading 5807 provides and covers labels and similar articles - Honourable High Court has further opined that the CTH 5807 10 provides and covers labels and similar articles. Notwithstanding whether the imported goods came with printing on it or not then also, the Court held that, if it is not label in strict sense then also the material imported can be said similar to label - Applying the same ratio, the product commonly identified by the section of people dealing in or using the same would be known as Label due to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Roll 28 19 Single Side Oven Edge Polyester-Satin Roll 25 20 Tearaway Taffeta Roll 35 21 Single Side Oven Edge Polyester-Satin Roll 32 22 Single Side Slit polyester Satin Roll 12 23 Single Side Oven Edge Polyester-Satin Roll 45 24 Single Side Oven Edge Polyester-Satin Roll 15 25 Iron on Taffeta Roll 30 26 Iron on Taffeta Roll 22 27 Iron on Taffeta Roll 20 28 Recycled Single Side slit Black polyester-Satin Roll 40 29 Iron on Taffeta Roll 305 30 Tearaway Taffeta Roll 30 31 Single Side Slit Satin Roll 32 32 Single Side Slit Satin Roll 25 33 Single Side Slit Satin Roll 32 34 Single Side Slit Satin Roll 30 35 Double Side Slit Satin Roll 38 36 Double Side Slit Satin Roll 30 37 Double Side Slit Satin Roll 20 38 Double Side Slit Satin Roll 30 39 Double Side Slit Satin Roll 15 40 Single Side Oven Edge Polyester-Satin Roll 20 41 Single Side Oven Edge Polyester-Satin Roll-Black 20 42 Single Side Satin Black Roll 25 43 Double Side slit Satin Roll-Black 32 44 Double Side slit Satin Roll-Black 35 45 Double Side slit Satin Roll 32 46 Double Side Oven Edge Polyester-Satin Roll 32 2. The applicant is engage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds through Nhava Sheva Port, comments from the jurisdictional Principal Commissioner/Commissioner of Customs were invited. 3. The personal hearing in the matter was scheduled for 1-11-2022. S/Shri S.S. Gupta, CA and Vaibhav Shah, CA, represented the applicant as authorised representatives and submitted multiple documents- explanatory notes, case laws etc., in support of their claim to classification under CTH 5807 10. Based on the documentary evidence on record including judgment of Hon'ble HC of Kolkata they requested to issue a ruling in favour of CTH 5807 10. 4. In this matter, the comments from the jurisdictional Commissionerate were received on 14-11-2022 from Office of the Commissioner of Customs, NS-III, Jawaharlal Nehru Custom House, Nhava Sheva, which are as below :- 4.1 It has been informed that issue covered under advance ruling sought is not pending in the applicant's case in this office. Further, it has been submitted that importer intends to import Rolls made of Polyester, Taffeta, Satin etc., which are available with width ranging from 10 mm to 810 mm. The characteristics of the product mentioned by the applicant in its submission are :- (i) The products are mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in separate units obtained by cutting to size or shape but must not be otherwise made up. This heading does not include labels, badges and similar articles, which have been embroidered (Heading 58.10) or made up otherwise than by cutting to shape or size (Heading 61.17. 62.17 or 63.07) 4.3 In light of above, point-wise reply to the applicant's queries' w.r.t. CAAR-I is as under :- (a) Products proposed to be imported does not fall under CTH 5807.10 The labels are classified in Heading 5807 only if they fulfil the following conditions : (1) They must not be embroidery. The inscriptions or motifs on the articles classified here are generally produced by weaving (usually broche work) or by printing. (2) They must be in the piece, in strips (as is usually the case) or in separate units obtained by cutting to size or shape but must not be otherwise made up. In the instant case, product intended to be imported does not appear to be labels as they are not bearing individual inscriptions or motifs. (b) Products proposed to be imported is rightly classifiable under CTH 5806 32 00 for products made of man-made fibres and narrow woven fabrics of a width not exceeding 30cm. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter Tariff Heading 5806 32 00 and has recommended that for narrow woven fabrics made of man-made fibres, the total custom duty is 28.1% (BCD 20%, SWS 10% and IGST 5%). 5.1 It has been counter argued by the applicant that the Commissionerate has not provided any decision on the classification of the Rolls made of polyester, taffeta, satin etc. having width of more than 30 cms. They have submitted their counter reply against the above observations of the jurisdictional Commissioner and the same is reproduced as under : 5.2 Textiles labels printed or otherwise are classifiable under HSN 5807 10. It is submitted that the CTH 5807 10 does not require a label to be printed for classification under the heading. Further, there is no such requirement in the chapter and section notes. It is also submitted that the Hon'ble Calcutta High Court in the case of M/s. Bijay Kumar Poddar v. Union of India - 2000 (126) E.L.T. 393 (Calcutta) has held the plain label strips as 'labels' considering that it is meant for printing and there is no alternate use of the same. The related sub-heading 5807 provides and covers labels and similar articles. "25. The facts are not in dispute that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen a liberal construction of the wide Heading No. 44.08 cannot accommodate "block board" within it." 22. Further in para 17 their Lordships has quoted their observations in case of Nat Steel Equipment private Ltd. v. Collector of Central Ex., 1988 (34) E.L.T. 8 (S.C.) :- ... The expression "similar" is a significant expression. It does not mean identical but it means corresponding to or resembling to in many respects, somewhat like or having a general likeness. The statute does not contemplate that goods classed under the words of 'similar description' shall be in all respects the same. If it did these words would be unnecessary. These were intended to embrace goods but not identical with those goods……. 23. Unprinted labels if not accepted (as labels then it amounts to) giving narrow meaning to it. It should be accepted as similar articles as that of label. Specially, when in the trade world it is known as label. 5.4 The applicant has submitted that the they also intend to import Rolls made of polyester, taffeta, satin etc., which are similar to reels in question in the decision given by the Calcutta High Court. Thus, on the basis of principles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicant further submits that the rolls would be imported in standard sizes and can be cut as per the requirement of the customer. The Rolls come in a specified size as maintained by the suppliers and commonly accepted in the trade practices. The rolls shall be imported as per the standard size maintained by the supplier and subsequently sell the same to the Indian customers who will cut to size as per their requirements. Further, the Rolls have multiple industry applications like garments, toys, automobile and the same are required to be cut in the size as per the product's requirement and hence, it does not come with marking. It is argued that if the rolls are given a specific marking for cutting then the same will have a limited application and can be used only by a particular customer/industry. However, the applicant will import the Rolls and then identify the customer, and hence, the Rolls cannot come with a specific cut marking. Thus, the rolls without marking shall also be meant for use for labels and hence, it is classifiable under CTH 5807 10. 5.9 In view of above, the applicant submits that the rolls are classifiable under CTH 5807 10 and subject to basic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 fabric (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. They may also be created when a fabric is treated before it is 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 selvedge, either real or false, on each edge, are excluded from this heading and classified with ordinary woven fabrics. (3) Seamless tubular warp and weft fabrics, of a width when flattened, not exceeding 30 cm. Fabrics consisting of strips with the edges joined to form a tube (by sewing, gumming or otherwise) are, however, excluded from this heading. (4) Bias binding consisting of strips, with folded edges, of a width, when unfolded, not exceeding 30 cm, cut on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : (1) They must not be embroidery. The inscriptions or motifs on the articles classified here are generally produced by weaving (usually broche work) or by printing. (2) They must be in the piece, in strips (as is usually the case) or in separate units obtained by cutting to size or shape but must not be otherwise made up. This heading does not include labels, badges and similar articles, which have been embroidered (Heading 58.10) or made up otherwise than by cutting to shape or size (Heading 61.17, 62.17 or 63.07). 6.3 From the descriptions of the products as seen in Table-A above, I find that the same are of various type having sizes ranging from 10 mm to 305 mm, whereas in the CAAR-I application the applicant had mentioned sizes ranging from 10 mm to 810 mm. However, there is only one item in the list of products having width exceeding 300 mm, namely 'Iron on Taffeta Roll - 305 mm'. I also find a plethora of case laws/judgments cited by the applicant in furtherance of their case. The jurisdictional Commissionerate has opined that the product under reference is covered under the Heading 58.06 as narrow woven fabrics, whereas the applicant is seeking classification und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed below. "25. The facts are not in dispute that the petitioner has imported plain label strips described as cloth for printing. The sample of that material also produced in the court and Learned Counsel submits that there cannot be any other use of this material, except for printing the labels and in the trade market under the catalogues, these plain strips are called labels. Learned Counsel for the respondent could not point out any use of the material produced in the court other than the use of the plain strips for purpose of printing labels. The material is known in the trade market as labels. We do not find any justification to put that material under the sub-heading 59.07. Sub-heading provides for woven fabrics of chapter 54 and not of plain weave woven strips of widths 1.5 cm to 3.5 cm. Its correct heading should be 58.07 as that entry does not cover only the labels, but also the similar materials." Honourable High Court has further opined that the CTH 5807 10 provides and covers labels and similar articles. Notwithstanding whether the imported goods came with printing on it or not then also, the Court held that, if it is not label in strict sense then also the mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ker." Applying the same ratio, the product commonly identified by the section of people dealing in or using the same would be known as Label due to its functional character. Further, due to the exclusion clause the said label or similar articles in strip would not be covered under Heading 58.06. 6.5 Further, labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered are covered under Heading 58.07. The Apex Court in the case of CCE, Shillong v. Wood Craft Products Ltd., 1995 (77) E.L.T. 23 (S.C.) = 1995 taxmann.com 361 (SC) has observed that ''Words & Phrases - "similar" and "same" - The word "similar" is expansive and not restrictive like "same" '. It would be not out of place to mention that in similar context in Nat Steel Equipment Private Ltd. v. Collector of Central Ex., 1988 (34) E.L.T. 8 (S.C.) = 1988 taxmann.com 612 (SC), while considering the meaning of the word "similar" in a tariff item, it was stated as follows : "….. The expression "similar" is a significant expression. It does not mean identical but it means corresponding to or resembling to in many respects; somewhat like; or having a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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