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TMI Blog2024 (2) TMI 1533X X X X Extracts X X X X X X X X Extracts X X X X ..... le and thread. Since PVC is nonporous, a needle would leave a large hole that would allow water to enter, making for a very ineffective raincoat, and weakening the seam. Instead, PVC seams are generally "welded" (sealed) with heat, or bonded by chemical means. Either way, the all pieces of materials are melt together, either thermally or chemically, and are permanently bound. Thus, it is a non-woven product. Chapter Note 1 of Chapter 61 states that "This Chapter applies only to made up knitted or crocheted articles". Therefore, by applying this chapter note 1 ibid it is amply clear that PVC raincoat can not be classified under heading 6101: Men's or boys' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets) wind-cheaters, wind-jackets and similar articles, knitted or crocheted, other than those of heading 61.03. Articles covered under heading 6103 are also knitted or crocheted. Heading 6201 covers Men's or boys' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets), wind-cheaters, wind-jackets and similar articles, other than those of heading62.03. Heading 6203 covers Men's or boys' suits, ensembles, jackets, blazers, trousers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e all pieces of materials are melt together, either thermally or chemically, and are permanently bound. Thus, it is a non-woven product. Once all the material are permanently bounded the stitching of front zipper (made from polyester tape/ plastic teeth), draw cord (made from polyester), button (made from plastic or metal) or stopper (made from plastic) is carried out. The finished product is then sent to the packing machine for packing and the final product is ready to be transferred to the warehouse for dispatching the same to various distributors, retailers, wholesaler, etc. 2.2. The PVC raincoats are made from PVC Sheets and Trims: Zipper, Draw Cord, Button & Stopper. The flow of process involved in the manufacturing of the PVC raincoats is as follows: PVC Sheet rolls & Trims->Panel Cutting Process (front, back, sleeves and pockets etc.)->Printing->Heat Sealing (Welding)->Front Zipper Stitching->Packing (Individual Polybag & Master Carton)->Transfer to Warehouse and dispatch. 2.3. The Applicant wants to export the PVC raincoats. As per the understanding of the Applicant the said product will be classified under chapter 62 of Customs Tariff Act (HSN code 6201) as the same spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adings even if put up in sets for retail sale. For the purposes of this Note, the expression "textile garments" means garments of headings 6101 to 6114 and headings 6201 to 6211". On perusal of the above section note, it is clear that the "textile garments" covered under the said section XI will be classified under that particular heading of section XI only. Further, the applicant submits that it is well settled that the Section Notes and Chapter Notes in the Customs Tariff Act are a part of the statutory tariff and thus, relevant in the matter of classification of goods. The relevant headings in the tariff have to be interpreted and applied in the light of Section Notes and Chapter Notes which are statutory and binding like the headings themselves. These Section Notes and Chapter Notes sometimes expand and sometimes restrict the scope of certain headings. (See: Saurashtra Chemicals 1986 (23) ELT 283). In other words, the scheme of the Customs Tariff Act is to determine the coverage of the respective headings in the light of the Section Notes and Chapter Notes. In this sense, the Section Notes and Chapter Notes have an over-riding force on the respective headings. However, the ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... animal hairs, silk mineral, asbestos Man-made fibres based on natural organic polymers rayon, regenerated cellulose acelate, partially acetylated cellulose derivative azlon, regenerated protein based on synthetic organic polymers acrylic, based on polyacrylonitrile (also modacrylic) aramid, based on aromatic polyamides nylon, based on aliphatic polyamides olefin, based on polyolefins (polypropylene) polyester, based on polyester of an aromatic dicarboxylic and a dihydricalcohol spandex based on segmented polyurethane vinyon based on polyvinyl chloride based on inorganic substances glass metallic ceramic. "Textile Terms and Definitions, Tenth Edition" published by the Textile Institute has also defined the term 'textile'. The Textile Institute is an international organisation governed by a Council representing members throughout the world. The term 'textile' as per this publication is defined as follows: "A textile was originally a woven tabric but the terms textile and the plural textiles are now also applied to fibres, filaments and yarns, natural and manufactured and most products for which these are a principal raw material. Note: This definition embrace ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court while laying down the law that any woven fabrics were "textiles" irrespective of the materials used, technique of weaving adopted and the end-use of the product. Further, it was held that, Plastic is a well-known textile material and various varieties of yarns and fabrics are produced out of plastic materials, namely, terelene, polyester, nylon, acrylic, texturized yarns, silicon yarns, etc. The applicant submitted that in the instant case, PVC raincoats are made of PVC material. PVC material normally consists of strong synthetic plastic polymer. Thus, on the con- joint reading of the above provisions and the characteristics of the product, it is safe to infer that raincoat is made of textile material. Once it is so, it would fall out of Chapter 39 of the Tariff. Leading to chapter heading 6201 of the Tariff. It is well settled that the HSN Explanatory Notes are a safe guide to understand the meaning of the terms and classification under the Customs Tariff Act. Judgment of the Hon'ble Supreme Court in the case of CCE v/s Woodkraft 1995 3 SCC 454 refers. Explanatory notes to chapter 62.01 reads thus: 62.01 Men's or boys' overcoats, car-coats, capes, cloa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion shall be preferred to headings providing a more general description. This view has been endorsed by the Hon'ble Apex Court in the case of Commercial Tax Officer V. Binani Cement Limited reported in 2014 (3) SCR 1. 4. A personal hearing in the matter was conducted on 23.01.2024 in the office of CAAR, Mumbai. During the personal hearing the authorised representative of M/s. NZ Seasonal Wear Private Limited, Shri. Bharat Raichandani, Advocate reiterated the content of the application filed in this matter. He contended that their product wind-cheater/rain-coat made of PVC merit classification under Customs Tariff heading 6201 more particularly under 6201 40 10 or 6201 40 90. Nobody appeared for personal hearing from the department side either physically or through e-hearing mode. The office of the CAAR, Mumbai has not received any relevant records/comments on the subject application from the concerned jurisdiction i.e. Nhava Sheva (Exports), JNCH till date. Further, vide E-mail dated 13.02.2024, the applicant has clarified that the 'PVC raincoats' proposed to be exported by them falls under HSN 6201 for Men's or Boy's Overcoats/raincoats etc. 5. I have taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res, textile garments of different headings are to be classified in their own headings even if put up in sets for retail sale. For the purposes of this Note, the expression "textile garments" means garments of headings 6101 to 6114 and headings 6201 to 6211". I concur with the understanding of the applicant that on perusal of the above section note, it is clear that the "textile garments" covered under the said section XI will be classified under that particular heading of section XI only. 5.3 The applicant has submitted that to manufacture PVC raincoat the small PVC sheets are generally not stitched with a needle and thread. Since PVC is nonporous, a needle would leave a large hole that would allow water to enter, making for a very ineffective raincoat, and weakening the seam. Instead, PVC seams are generally "welded" (sealed) with heat, or bonded by chemical means. Either way, the all pieces of materials are melt together, either thermally or chemically, and are permanently bound. Thus, it is a non-woven product. Chapter Note 1 of Chapter 61 states that "This Chapter applies only to made up knitted or crocheted articles". Therefore, by applying this chapter note 1 ibid it is amp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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