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2022 (7) TMI 907 - AAAR - GSTClassification of goods - Poly Propylene Non-Woven Bags - the bags are manufactured from intermediate product i.e. Poly Propylene Non-Woven fabrics which in turn is manufactured from Fiber grade poly propylene granules by adopting the Spun Bond technology - classifiable under Heading No. 5603 or under Heading No.6305 or under Heading 3923? - eligibility for exemption under Notification No.01/2017-CT(Rate) and 01/2017-1T(Rate) dated 28.06.2017, as amended - HELD THAT:- In the present case, Non-woven bags are made from polypropylene granules which is also a type of plastics made from polymerization of propylene. As mentioned in General Notes to Chapter Heading 39 of Custom Tariff Act, 1975, Plastics include materials which are capable of polymerization at some stage and therefore, in view of findings of Madhya Pradesh High Court in RAJ PACK WELL LTD. VERSUS UNION OF INDIA [1989 (9) TMI 120 - MADHYA PRADESH HIGH COURT], fabric made from polypropylene, by no stretch of imagination construed as textile but merits classification as plastic or article of plastic under Chapter Heading No. 3923. From perusal of findings of Supreme Court in PORRITTS & SPENCER (ASIA) LTD. VERSUS STATE OF HARYANA [1978 (9) TMI 72 - SUPREME COURT], it is very clear that the product in question in above case viz. dryer felts is made from cotton and wollen which is covered in the ambit of 'textile' and in present case Non-woven bags are made from polypropylene which is a type of plastic and on this ground alone it can be said that the above case law relied by appellant is not applicable in present case. Thus, the product in question viz. Polypropylene Non-woven bags merits classification under Chapter Heading 3923 of the HSN/Customs Tariff Act, 1975. Appeal dismissed.
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