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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Taffeta Roll 32 7 Nylon Taffeta Roll 64 8 Nylon Taffeta Roll 38 9 Nylon Taffeta Roll 40 10 Nylon Taffeta Roll 38 11 Nylon Taffeta Roll 32 12 Nylon Taffeta Roll 32 13 Nylon Taffeta Roll 25 14 Nylon Taffeta Roll 10 15 Nylon Taffeta Roll 204 16 Nylon Taffeta Roll 153 17 Nylon Taffeta Roll 102 18 Single Side Oven Edge Polyester-Satin Roll 28 19 Single Side Oven Edge Polyester-Satin Roll 25 20 Tearaway Taffeta Roll 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e business of purchase and sale of products in India. They have proposed to import Rolls made of Polyester, Taffeta, Satin etc. which are available with width ranging from 10 millimetres to 810 millimetres (hereinafter referred to as the products ), more specifically described in Table-A. The applicant submits that the ultimate customer of the products are the companies engaged in manufacturing of readymade garments. The products will be ultimately used for the purpose to capture trademark, wash care instructions and other details like country of manufacturing, size, make etc. on the products for the reference of retail customers. In this respect it is submitted that the products have following characteristics : The products are made of manmade fibres textile fabrics The products are not embroidered The products are in the pieces, in strips or cut to shape or size The products are known as labels in common parlance and trade There is no alternate use of the products except as labels 2.1 In the present case, the applicant has proposed to import products and will classify it under HSN Code 5807 and pay Customs duty under Entry no. 147 of Notification No. 82/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de of manmade fibers textile fabrics (ii) The products are not embroidered (iii) The products are in the pieces, in strips or cut to shape or size (iv) The products are known as labels in common parlance and trade (v) There is no alternate use of the products except as labels Further, website of foreign supplier, as mentioned by the applicant in its application at Para No. 6 is visited and printouts of the items from website https://www.king-grp.com/ and https://www.fivestar-label.com/product/ are enclosed herewith for perusal and reference wherein it is noticed that fabric intended to be imported do not have essential character of a label i.e., no inscriptions or motifs are found inscribed on the item. Further, they are in running length which do not have regular cut markings or bear any typical design of a label. 4.2 HSN Explanatory notes to Chapter Heading 58.07 read as under :- 5807 LABELS, BADGES AND SIMILAR ARTICLES OF TEXTILE MATERIALS IN THE PIECE, IN STRIPS OR CUT TO SHAPE OR SIZE, NOT EMBROIDERED 5807 10 - Woven : 5807 10 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined 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. For width greater than 30cm which does not come under the purview of narrow woven fabrics will get classified as per the composition and characteristics of the fabrics i.e., whether woven, knitted or crocheted, whether impregnated, coated or laminated, whether made of filament yarn or staple fibres etc. To ascertain the composition for correct classification, valid previous test report in terms of DGFT Notification No. 19/2015-2020, dated 4-9-2015, DGFT Public Notice No. 32/2015-2020, dated 4-9-2015 and JNCH Public Notice No. 81/2015, dated 15-10-2015, as amended from time to time is required. (c) Notification No. 82/2017, dated 27-10-2017 was rescinded w.e.f. 1-5-2022 (Serial No. 15 of Notification No. 5/2022-Customs, dated 1-2-2022) (Ref. : Finance Bill, 2022 read with C.B.I. C. Letter N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso 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 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 do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 laid down by the Hon ble High Court, the Rolls made of polyester, taffeta, satin etc. though not printed shall be classified as labels under CTH 5807 10. 5.5 It is submitted that the rolls proposed to be imported by the applicant do not have an alternate use other than labels. The Commissioner, in his letter, has also not highlighted any alternate use of the rolls proposed to be imported by the applicant. It is submitted that one side or both sides of the rolls proposed to be imported by the applicant shall be coated/processed specially to enable printing; that it is a common practice of the retailers to stitch labels to the products to provide wash care information or details about the supplier/make etc.; that the printing of such information is not legible durable on the plain fabric as in the normal fabric printing is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 customs duty of 10% under the First Schedule of the Customs Tariff Act, 1975 and IGST of 12% under Entry 153 of Schedule II of Notification No. 1/2017-IGST (Rate), dated 28 June, 2017. 6. I have gone through the contents of the application, abovementioned submissions and all the documents placed before me. I have also gone through the comments from the jurisdictional Commissionerate and have taken on record the rejoinder and additional submissions filed by the applicant. I proceed to deliberate upon the issue on the basis of documents and submissions placed on record. The applicant is seeking advance ruling on the classification for the proposed import of Rolls made of Polyester, Taffeta, Satin etc. with width ranges from 10 millimetre to 810 millimetre. I find that the jurisdictional Commissionerate in their comment has opined that the said p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 cross from warp and weft fabrics. These products are cut from wide fabrics and not provided, therefore, with a selvedge, either real or false. These products remain classified here when watered ( moire ), embossed, printed, etc. (B) Bolducs This heading also covers narrow fabrics (bolducs) of a width usually ranging from a few mm to 1 cm, consisting of warp (parallelised yarns, monofilaments or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 under Chapter Heading 58.07 which covers labels, badges and similar articles of textile materials, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scribed 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 material imported can be said similar to label. While delivering the judgment on classification Honourable H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional 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 general likeness. The statute does not contemplate those goods classed under the words of similar description shall be in all respects the same. If it did these wor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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