9911796707
TMI Blog2024 (10) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... or paint brush in cut lengths declaring those under CTH 54041990. Goods classified under CTH 5404 are allowed IGST @ 12% only when the goods are Artificial or Synthetic Yarn. The most important distinction between a filament and a yarn is the way each material behaves when subjected to different forces and temperatures: whereas filament tend to break when exposed to high heat of pressure, yarns are much more resistant due to their composition (Multiple levels) and therefore less likely to break under such conditions. Therefore, it makes sense why many products rely heavily as yarn constructions rather than using only filaments because having multiple plies gives these items extra strength which increases is durability over time! Thus, in vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mended vide Notification No. 35/2017 Integrated Tax (Rate) dated 13.10.2017 and an entry no. 132B was inserted in Schedule II for Synthetic or Artificial filament yarns (for CTH 5402,5403,5404,5405,5406) which attract IGST @12%. However, entry No. 159 of Schedule III has been substituted as All goods other than synthetic filament yarns wherein IGST Tax @ 18% is still applicable as tabulated hereunder:- Table A (Notification No. 1/2017-Integrated Tax (Rate) (updated) S.no IGST Schedule CTH Description Rate 159 III 5402, 5405, 5406 All goods other than synthetic filament yarn 18% 132B II 5402, 5403, 5404, 5405, 5406 Synthetic or artificial filament yarn 12% Since, the goods under import were POLYESTER FILAMENT FOR PAINT BRUSH POLYESTER FILAME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and while availing the benefit of Notification No. 35/2017 dated 13.10.2017 IGST @ 12% has been paid. It is submitted that the goods have been classified under CTH 54041990 because the imported goods are, in technical sense, synthetic monofilament which is a type of synthetic fiber is made from polyester and which is used in paint brushes. In common trade parlance also the synthetic monofilament is called as polyester filament. It is further impressed upon that the Polyester filament is a type of synthetic fiber made from polyester. It is a popular choice for various applications, including Paintbrushes and others which merits classification under chapter sub-heading 5404.10 of Central Excise Tariff. HSN Explanatory Notes to Heading 54.04 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the parties, we proceed to decide the following question. Whether appellant is entitled to pay IGST at the rate of 12% as is mentioned in Notification No. 35/2017 dated 13.10.2017. Foremost we have perused the Notification No. 35/2017 Integrated Tax (Rate) dated 13.10.2017 as amended, whose relevant part is reproduced as below:- S.no. IGST Schedule CTH Description Rate 159 III 5402, 5404, 5406 All goods other than synthetic filament yarn 18% 160 III 5403, 5405, 5406 All goods other than Artificial filament yarn 18% 132B II 5402, 5403, 5404, 5405, 5405, 5406 Synthetic or artificial filament yarn 12% 7. Perusal reveals that IGST at the rate of 12% is to be paid when imported good is synthetic or artificial filament yarn. Rest all other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn can also consist of multiple plies that make them thicker and stronger than filaments. Additionally, yarn often come in various sizes that can range from very thin to thick depending on what they re used for. The most important distinction between a filament and a yarn is the way each material behaves when subjected to different forces and temperatures: whereas filament tend to break when exposed to high heat of pressure, yarns are much more resistant due to their composition (Multiple levels) and therefore less likely to break under such conditions. Therefore, it makes sense why many products rely heavily as yarn constructions rather than using only filaments because having multiple plies gives these items extra strength which increases ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
