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2021 (1) TMI 333 - AAR - GSTClassification of goods - Narrow woven fabrics manufactured - classifiable under Tariff Heading No. 58063990 or not? - benefit of N/N. 01/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT:- The product in question is manufactured by process of weaving from polyester yarn and its width is not exceeding 30 cm. However, it is not forthcoming from the submission that the product is having selvedges (flat or tubular) on both edges. Since, the product is not provided with a selvedges (flat or tubular) on both edges, it does not meet the definition of narrow woven fabric of being provided with selvages, as elaborated above. Hence, it would not be considered a narrow woven fabric. The said woven fabrics is, therefore, not fall under heading 5806 and to be classified with ordinary woven fabrics. As per the rate schedule, the woven fabric can be classified under many heading depending upon their composition. Thus, the product, narrow woven fabrics made of polyester yarn of a width not exceeding 30 cm but not provided with selvedges (flat or tubular) on both edges, is classifiable under sub-heading No. 5407.10.19 of the Customs Tariff Act, 1975. Applicable rate of tax - HELD THAT:- It is to mention that the said product attracts rate of tax of 2.5% CGST + 2.5% SGST as applicable under Sr. No. 217 under Schedule I of Notification No.1/2017-Central Tax (Rate) read with the corresponding notification under the Gujarat GST Act in case of Intra-State supply. Likewise, the applicable rate of tax will be 5% IGST under Sr. No. 217 under Schedule I of Notification No.1/2017-Integrated Tax (Rate) dated 28th June, 2017 in case of Inter-State supply. Thus, the product, Narrow Woven Fabrics of Polyester Yarn of a width not exceeding 30 cm but not provided with selvedges (flat or tubular) on both edges manufactured by the applicant is classifiable under Chapter Sub-heading No.5407.10.19 of the Customs Tariff Act, 1975, attracting rate of GST @ 5%.
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