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2021 (7) TMI 752 - AAAR - GSTClassification of goods - PVC carpet mats manufactured by them - classifiable under Tariff Item 5705.00.49 of CTA or under Tariff Item 3918 as held by the SGST Member? - taxable at a rate of 12% as per entry 146 of Schedule II of N/N. 1/2017-Integrated Tax Rate dated 28/6/2017? - HELD THAT:- For the purpose of GST, Classification of goods under any tariff item/sub-heading/heading/chapter shall be done using the General rules of interpretation of the First Schedule of the Customs Tariff Act, 1975 including the Section and Chapter Notes and the General Explanatory Notes to the HSN of the First Schedule of the CTA, 1975. The classification needs to be finalized only after deciding the nature of the material of which the impugned product is made up of. Once the same is found to be textile articles covered as goods of Section XI (Textiles & Textiles articles) in terms of the tariff (Section XI), the same gets classifiable under Chapter 57 and if it is found to be made up of plastics covered under Chapter 39 (section VII), the same shall be covered under Tariff Item 3918 - the impugned product under discussion has non-woven material made up of PVC on surface, which is coated/laminated with plastics (PVC), which is not in dispute. Hence, by virtue of said Section 1(h) to Section XI (Textiles and Textile articles), same gets excluded from the scope of being Textile & Textile articles under Section XI i.e. Chapters 50-63. There are no identifiable fibres, filaments or yarns in the exposed surface of their product but the web like structure made from 100% PVC, duly laminated/coated with PVC o the bottom. Therefore, the impugned goods do not qualify as textile materials as specified in Not 1 to Chapter 57 - the said Bill of Entry is of no help to the appellant - In the instant case, there is no fabric, woven or non-woven and no textile yarns. There is one PVC web obtained by moulding process which is then impregnated with PVC which acts as its base. Therefore, even in absence of relevant details about the product covered under the cited Bill of Entry, the goods in question cannot be claimed to be similar to that of the goods imported, based upon the explanatory notes to 5705 and the manufacturing process of the goods in question. The impugned goods viz. PVC carpet Mat would fall in the Customs Tariff heading 3918 and applicable rate of GST would be 18%.
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