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2022 (3) TMI 1086 - AAR - GSTClassification of goods - Geomembranes - Woven Tarpaulin - merits classification under Heading 5911, Sub Heading 59111000 or Sub Heading 59119090, as Textile products, coated, covered or laminated with plastic, used for technical purposes? - HELD THAT:- The burden of Classification is on Revenue. However, Revenue without submitting any analysis/evidence before us, made its submission that 5911 Tariff is the most appropriate classification. Now, the Legislature has empowered competent authority vide Section 168 CGST Act, 2017 with the power to issue Instruction or directions as per the GST scheme of law. As per CGST Act and rules framed thereunder, it is not found Textile Ministry empowered under GST scheme of law to issue directions/ instructions for GST Classification - M/s Texel has cited Notification dated 24-9-21 issued by Ministry of Textiles to further their view to classify subject goods. Classification of Geomembrane - HELD THAT:- Construing the wordings of Chapter Note 7(1)(a) to Chapter 59 that textile fabrics coated with ‘other materials’ used for technical purposes are included in this Chapter, it is held that the goods Geomembrane, though coated with Plastic but used for technical purposes finds place in the Tariff 5911, for the dual reason that the phrase ‘other materials’ used in this Tariff is vast to include plastics also; coupled with the technical use of Geomembrane - technical uses of Geomembrane, Geomembrane passing the test of Section note XI(1)(g) to Section XI, Geomembrane satisfying the test of Chapter 59 Note 7(1)(a) and by applying the Doctrine of Harmonious Construction, cleared the bar raised in Section note XI(1)(h) to Section XI; thus ‘Geomembrane’ is a textile article. Classification of Tarpaulin - HELD THAT:- Tarpaulin is used for protecting various things and materials and also covering motor vehicles and the like; for packing and protecting the goods in transportation. Also in general, Tarpaulins are used to cover construction materials and equipment, athletic fields, vehicles or other exposed objects, etc. - the uses of Tarpaulin are general in nature and thereby there are no merit to employ functional concept classification based on technicality in case of Tarpaulin. It is noted that there is also an entry of Tarpaulin at 6306. With our aforementioned findings, it is forthcoming that Tarpaulin is excluded from Textile articles as subject Tarpaulin is a plastic article, with general uses and further laminated with plastic - 6306 Tariff for subject plastic tarpaulin coated with plastic is rejected - thus, Tarpaulin is classified at HSN 3926, tariff item 39269099.
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