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2020 (1) TMI 179 - AAAR - GSTClassification of goods - HDPE woven fabric coated with HDPE melt - whether classified under either of HSN 6306/6301/5903 of the Tariff Act or not? - challenge to AAR decision - WBAAR pronounced its advance ruling stating that HDPE woven fabric coated with HDPE melt is not a textile fabric and tarpaulins made from the said laminated fabric is not classified under either of HSN 6306/6301/5903 of the Tariff Act. HELD THAT:- As the principal characteristic of tarpaulin is water proofing. unless the HDPE woven fabric is laminated it cannot be used to make tarpaulin. The process of lamination cannot be ignored or treated in isolation. It is an integral and vital process in manufacturing tarpaulin from HDPE, woven fabric - in view or Note 1(h) to Section XI of the GST Tariff Act mentioned above, the tarpaulins of HDPE woven fabric. laminated as per specification of IS 7903:2017, being expressly excluded, do not merit classification under Chapter 63. The question as to whether the product can be classified under HSN 5903, Note 2 to Chapter 59 is relevant which excludes "products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (Chapter 39)" - The sample produced by the Appellant was seen with the naked eye to be completely coated on both sides by plastic material and thus the laminated HDPE woven fabric in the instant case is not a textile material and does not merit classification under HSN 5903. The ruling pronounced by the WBAAR upheld - appeal dismissed.
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