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2024 (1) TMI 974 - AAR - GSTClassification of Rolls made of Polyester, Nylon Taffeta, Satin etc. which are available with width ranges from 10 millimeter to 810 millimeter with printable feature - Rate of IGST - to be classified under CTH 580710 of the First Schedule to the Customs Tariff Act, 1975 or not - entry no. 153 of Schedule II of Notification 1/2017 -IGST (Rate) 28 June 2017 - HELD THAT:- The HSN Explanatory notes to CTH 58.07, subject to the conditions specified, cover the labels of any textile material. These include labels of a kind used for marking wearing apparel, household linen, mattresses, tents, soft toys, or other goods. They are utilitarian labels bearing individual inscriptions or motifs. Such labels include, inter alia, commercial labels bearing the trade name or trade mark of the manufacturer or the nature of the constituent textile ("silk', "viscose rayon", etc.) and labels used by private individuals (boarding school pupils, soldiers, etc.) to identify their personal property; the latter variety sometimes bear initials or figures or comprise sometimes a framed space to take a hand written inscription. Condition that these products must not be embroidery. Goods will not have embroidery on them. Due to this explanation in the HSN explanatory notes the proposed imports will get covered under exclusion clause of CTH 5806. In the instant case the goods will be imported without printing of labels on them. Applicant has argued that the textiles labels printed or otherwise are classifiable under HSN 5807 10. Various courts in a plethora of cases have held that HSN explanatory notes have a persuasive effect in deciding the matters of classification. Keeping in view the observation of Apex Court in various decisions referred in forgoing paras as well as the decision of High Court decision in case of BIJAY KUMAR PODDAR VERSUS UNION OF INDIA [1999 (9) TMI 106 - HIGH COURT AT CALCUTTA], it is found that the said products have to be considered as articles similar to labels of textile materials in strips and accordingly are classifiable under heading CTH 58.07.1 do not find any grounds to disagree with the High Court decision in case of M/s Bijay Kumar Poddar vs Union of India on the issue of classification in the instant case. Thus, the Rolls made of Polyester, Nylon Taffeta, Satin etc. which are available with width ranges from 10 millimeter to 810 millimeter with printable feature more specifically described in Table 'A' (supra) collectively referred to as 'Products' proposed to be imported by the applicant merit classification as articles similar to label of textile material in strips under CTH 5807 specifically under sub-heading 5807 1020 of the First Schedule to the Customs Tariff Act, 1975 and also said 'products' are classifiable at 8-digit level under CTH 5807 1010 (Of cotton), 5807 1020 (Of man-made fibre) & 58071090 (Other) according to their composition and characteristics and said 'products' are covered by entry no. 153 of Schedule II of Notification 1/2017 - IGST (Rate) 28 June 2017.
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