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2023 (9) TMI 1196 - AUTHORITY FOR ADVANCE RULINGS CUSTOMS, MUMBAIClassification of goods proposed to be imported - Rolls made of Polyester, Taffeta, Satin etc. which are available with width ranging from 10 millimetre to 810 millimetre - to be classified under HSN Code 5807 or not - products are covered by Entry No. 147 of Notification No. 82/2017-Cus., dated 27-10-2017 and Entry No. 153 of Schedule II of Notification No. 1/2017-IGST (Rate), dated 28 June, 2017 or not - what is the basic Customs duty under First schedule of the Customs Tariff Act, 1975 and IGST rate under sub-section (7) of Section 3 of the said Customs Tariff Act read with Notifications issued on import of the products? HELD THAT:- From the descriptions of the products, it is found the same are of various type having sizes ranging from 10 mm to 305 mm, whereas in the CAAR-I application the applicant had mentioned sizes ranging from 10 mm to 810 mm. However, there is only one item in the list of products having width exceeding 300 mm, namely ‘Iron on Taffeta Roll - 305 mm’. It is submitted by applicant that the CTH 5807 10 does not require a label to be printed for classification under the heading. Further, there is no such requirement in the chapter and section notes. In support of this argument the applicant has further submitted that the Hon’ble Calcutta High Court in the case of BIJAY KUMAR PODDAR VERSUS UNION OF INDIA [1999 (9) TMI 106 - HIGH COURT AT CALCUTTA] has held the plain label strips as ‘labels’ considering that it is meant for printing and there is no alternate use of the same. The related sub-heading 5807 provides and covers labels and similar articles - Honourable High Court has further opined that the CTH 5807 10 provides and covers labels and similar articles. Notwithstanding whether the imported goods came with printing on it or not then also, the Court held that, if it is not label in strict sense then also the material imported can be said similar to label - Applying the same ratio, the product commonly identified by the section of people dealing in or using the same would be known as Label due to its functional character. Further, due to the exclusion clause the said label or similar articles in strip would not be covered under Heading 58.06. 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 M/s. Bijay Kumar Poddar v. Union of India, 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. The products as detailed in Table-A merit classification as articles similar to label of textile material in strips under Heading 58.07 and specifically under sub-heading 5807 10 20 of the First Schedule to the Customs Tariff Act, 1975.
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