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2021 (1) TMI 599 - AAR - GSTClassification of goods - fusible interlining cloth used in cotton fabrics - classifiable under HSN code 5903 or under Chapter 52/55 (depending upon the weightage of Cotton)? - HELD THAT:- The dispute regarding classification of fusible interlining cloth, which is partially coated with plastic by the dot printing process i.e. whether it is covered under Chapter 52 to 55 or Chapter 59, has repeatedly come up before different authorities. In it’s Circular No.24/Coated Fabric/88-CX.1 dated 02.09.1988, CBEC has referred to the production process. The finished woven fabric passed over preheated rolls having a high surface temperature and the heated substance was then pressed to a printing roll having fine dots engraved on it. High-density polyethylene powder was taken in a hopper that sat on the engraved printing roll, filling the dots. As a result, the pre-heated fabric got printed with plastic dots. The powder in between the engraved dots was scrapped by a doctor blade provided in the hopper. The dot printed cloth then passed through a heated chamber where the plastic melted and fused with the piece of cloth. CBEC concluded that the fusible interlining merited classification under Heading 5903 if the above printing process covered one side of the fabric with a continuous and adherent film or layer of plastic that made the fabric impervious. The applicant’s product ‘fusible interlining cloth of cotton fabric’ would undoubtedly be classifiable under Heading 5903 only. We, therefore, conclude that the product ‘fusible interlining cloth of cotton fabric’ of the applicant is classifiable under Heading 5903 of the First Schedule to the Customs Tariff Act, 1975 - On going through the headings, chapter note of Chapter 52 as well as the explanatory notes to HSN with respect of the headings 5208 to 5212, we find that it does not cover laminated fabrics or fabrics coated with plastics. Hence, it can be safely concluded that ‘Fusible Interlining cloth for cotton fabrics’ will not be covered under Chapter 52 of the First Schedule to the Customs Tariff Act, 1975.
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