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2019 (4) TMI 77 - AAR - GSTClassification of goods - polypropylene mat commonly known as Plastic Mat, Plastic mats are manufactured by plaiting together the mono-filament and strips - whether classified under HSN code 460101 or otherwise? - Held that:- The process of manufacture of plastic mat/matting (Satranji) is by converting polypropylene into tube form by application of heat and air on an extruder machine with the length of plastic tube of diametre 1.5 mm. Then cut it into the size of the mat to be manufactured. These cut tubes are further used on weaving loom machines to produce Satranji with the help of polyester or cotton yarn as weft materials. Therefore the woven plastic materials like plastic mat or mattings will not come under the classification in Chapter 39. The plastic tubes of diameter of 1.5 mm used for the manufacture of plastic mat / mattings (Satranj) would be covered within the term “mono-filament and strips and the like of plastics” as described in Chapter 46. Therefore mats / mattings made by weaving or binding parallel stands of plaiting materials, twine, cord etc. will be covered under Chapter 46. The Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 was amended by Notification No. 27/2017 Central Tax (Rate) dated 22.092017 inserting a new Entry under 1st Schedule vide Sl. No. 198A which read as “grass, leaf or reed or fibre products, including mats, pouches, wallets” covered under HSN No.4601 or 4602. Accordingly these specified items became taxable @ 2.5% SGST from 22-09-2017. The items falling under HSN Nos. 4601 and 4602 as specifically mentioned in the Entry at Sl No. 198A of Schedule I; such as goods made from grass, leaf or reed or fibre products, including mats, pouches, wallets was taxable @ 5% from 22.092017 - the items manufactured out of polypropylene were excluded from the purview of Entry at Sl. No. 198A of 1st Schedule of GST Tariff and were covered under 2nd Schedule of the GST Tariff till 25-01-2018; when the entries at SI Nos. 103 & 104 of IInd Schedule was omitted and the entry at Sl.No. 198A of Schedule of GST Tariff Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 was substituted as “Manufactures of straw, of esparto or of other plaiting materials: basketware and wickerwork” by Notification No-6/2018- Central Tax (Rate) dated 25.01.2018 and S.R.O. No. 555/2018 dated 10-08-2018 of SGST w.e.f. 25-01-2018. Polypropylene mats manufactured by plaiting together the Polypropylene mono-filament or tube or straw come under the Chapter 46 of Customs Tariff Act, 1975 - As per Entry 103 of Schedule of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 and S.R.O. No. 360/2017 dtd.30-06-2017 polypropylene mats were taxable @ 12% GST 25-01-2018 and thereafter at 5% GST as per Entry 198A of the Schedule of Notification No. 01/2017-Central Tax (Rate) dated 28.05.2017 and S.R.O.No. 360/2017 dtd.30-06-2017.
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