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TMI Blog2024 (9) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... ncludes silk worm gut. The applicant s product non-woven coated fabrics-coated, laminated or impregnated with PVC, is a combination of nonwoven fabrics, adhesive coat and PVC sheet, thereby not meeting the primary requirement for falling under chapter 50. Whether the product nonwoven coated fabrics-coated, laminated or impregnated with PVC, would fall under which heading of chapter 39? - HELD THAT:- Since the product of the applicant is a mixture of various constituents as is already mentioned, the product is to be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. It is already stated that the major constituent is PVC sheet which is 120 GSM out of the total 240 GSM. Therefore, the goods of the applicant viz nonwoven coated fabrics-coated, laminated or impregnated with PVC would fall under chapter 39. X X X X Extracts X X X X X X X X Extracts X X X X ..... over Sofa cover, fridge cover; * Nonwoven is used in the bottom and PVC films is used on the top; * The nonwoven fabrics helps to get proper stitching on the goods; that without using nonwoven it is not possible to have stitching on the goods; * PVC will get spoilt if stitching is directly on PVC films; * PVC films are used only for decorative purpose while nonwoven is used as a base and foundation of the nonwoven fabrics. 4. In view of the foregoing, the applicant is before the Authority raising the following questions viz 1. Whether "nonwoven coated fabrics-coated, laminated or impregnated with PVC falls under HSN 56031400? 2. If 'nonwoven coated fabrics-coated, laminated or impregnated with PVC' does not fall under HSN 56031400 then it will fall under which heading of chapter 50? 3. If 'nonwoven coated fabrics-coated, laminated or impregnated with PVC' does not fall under HSN 56031400 then it will fall under which heading of chapter 39? 5. Personal hearing was granted on 27.2.2024 wherein Shri Jagdish Surti, Satish Patel and Hitesh Patel appeared on behalf of the applicant and reiterated their submissions. Owing to change in the Member of the GAAR, a fresh person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 809 or 5902 and of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over any other single textile materials. When no one textile material predominates by weight, the goods are to be classified as if consisting wholly of that one textile material which is covered by the heading which occurs last in numerical order among those which equally merit consideration. * CUSTOMS TARIFF NOTES OF CHAPTER 56 CHAPTER 56 Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof Headings 5602 and 5603 do not, however, cover:- (a) felt impregnated, coated, covered or laminated with plastics or rubber, containing 50 per cent. or less by weight of textile material or felt completely embedded in plastics or rubber (Chapter 39 or 40); (b) nonwovens, either completely embedded in plastics or rubber, or entirely coated or covered on both sides with such materials, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (Chapter 39 or 40); or (c) plates, sheets or strip of cellular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into a web or which are coagulated, washed and laid down directly into a web in a wet form of the process (spun laid process): (c) by suspending and dispersing fibres in water, depositing the resultant slurry onto a wire screen and forming a web by removal of the water (wet-laid process), (d) by various specialised technologies in which fibre production, web formation and usually bonding occur simultaneously (in situ process) II. Bonding After web formation the fibres are assembled throughout the thickness and width of the web (continuous method) Or in spots or patches (intermittent method) 56.03 This bonding can be divided into three types : (a) Chemical bonding, in which the fibres are assembled by means of a bonding substance This may be done by impregnation with an adhesive binder such as rubber, gum, starch, glue or plastics, in solution or emulsion, by heat treatment with plastics in powder form, by solvents, etc Binding fibres can also be used for chemical bonding. (b) Thermal bonding, in which the fibres are assembled by submitting them to a heat (or ultrasonic) treatment, passing the web through ovens or between neated rollers (area bonding) or through heat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard or cellulose wadding by the fact that the textile fibres are not digested during the process of manufacture Finally, the fact that the textile fibres or filaments are bonded throughout the thickness, and generally throughout the width, of the web or sheet also helps to distinguish these fabrics from certain types of wadding of beading 56.01 (see the Explanatory Note to that heading). Certain nonwovens can be washed or wrung like other textile fabrics. Except where they are covered more specifically by other headings in the Nomenclature, the heading covers nonwovens in the piece, cut to length or simply cut Io rectangular (including square) shape from larger pieces without other working, whether or not presented folded or put up in packings (e.g. for retail sale) These include facing webs (overlay) for incorporation in laminated plastics; top-sheets for the manufacture of disposable baby napkins (diapers) or sanitary towels: fabrics for the manufacture of protective clothing or garment linings; sheets for filtering liquids or air, for use as stuffing materials, for sound insulation, for filtration or separation in road building or other civil engineering works, substrates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sually heat and pressure, if necessary with a solvent or plasticizer) by moulding, casting, extruding, rolling or other process into shapes which are retained on the removal of the external influence. 7.4 Thus it is clarified that Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP would be classified as plastic bags under IIS code 3923 and would attract 18% GST. 7.5 Non-laminated woven bags would be classified as per their constituting materials. * HSN NOTES OF CHAPTER 39 39.26 - Other articles of plastics and articles of other materials of headings 39.01 to 39.14. 3926.10 - Office or school supplies 3926.20 - Articles of apparel and clothing accessories (including gloves, mittens and mitts) 3926.30 - Fittings for furniture, coachwork or the like 3926.40 - Statuettes and other ornamental articles 3926.90 - Other This heading covers articles, not elsewhere specified or included, of plastics (as defined in Note 1 to the Chapter) or of other materials of headings 39.01 to 39.14 They include : (1) Articles of apparel and clothing accessories (other than toys) made by sewing or scaling sheets of plastics, e.g., aprons. Belt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P; that the nonwoven is used in the bottom & PVC films is used on the top of the non-woven fabrics; that the non-woven is used to get proper stitching; that PVC is used for decorative purpose while non-woven is used as a base and foundation for the non-woven fabrics; that the content of the product is as under: nonwoven fabrics : 40 GSM, adhesive coat : 80 GSM, PVC sheet : 120 GSM, ie Total 240 GSM. 11. The applicant is of the view that his goods [nonwoven coated, fabrics-coated, laminated or impregnated with PVC] are classifiable under tariff item 56031400. This is also first question on which the applicant has sought a ruling. We would first like to examine the aforementioned claim of the applicant. 12. A conjoint reading of the manufacturing process, the section notes, chapter notes, etc, leads us to a conclusion that the nonwoven coated fabrics-coated, laminated or impregnated with PVC, will not fall under chapter 56 owing to the below mentioned reasons viz * note 1 of section XI states that woven, knitted or crocheted fabrics, felt of non-wovens, impregnated, coated, covered or laminated with plastics, or articles thereof, are not covered under Section XI; that cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VC, is a combination of nonwoven fabrics, adhesive coat and PVC sheet, thereby not meeting the primary requirement for falling under chapter 50. In view of the foregoing, we find that that the product of the applicant, would not fall within the ambit of chapter 50. 15. The third question raised is whether the product nonwoven coated fabrics-coated, laminated or impregnated with PVC, would fall under which heading of chapter 39. The applicant, in his application, [refer point 15], has without much detail, mentioned that his product is used as- [a] table cover, [b] television cover [c] washing machine cover [d] for making bags, etc. Since this is the only detail that is mentioned in the application, we are constrained to limit our ruling to the above products only. 16. We find that resort has to be taken to General Rules of Interpretation, the relevant portion of which is reproduced below for ease of reference viz 3. When by application of Rule 2 (b) or for any other reason, goods are. prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to hea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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