TMI Blog2019 (2) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... ut for ease of carrying being in the nature of Shopping Bags. The carry bags or shopping bags are covered in the Customs Tariff under CCTH 420222 depending on the material they are made up of. Shopping bags made of cotton are classified under CTH 42022220 and those made of non-woven fabrics are classifiable under CTH 42022210. Rate of tax - Held that:- Non-woven and cotton carry bags supplied by the Applicant were taxable to 9% CGST and 9% SGST as per SI no 126 and 127 of Schedule III of Notification No. 01/2017-CT (Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017 as amended respectively - the Carry Bags/Shopping Bags made-up of Cotton are taxable at 6% under CGST Act 2017 and at 6% under SGST Act 2017 as per Sl.No.89 of Schedule II while those Carry Bags made of Non-woven Fabrics are taxable to 9% under CGST Act 2017 and 9% under SGST Act 2017 as per Sl.No.124 of Schedule III of Notification No. 01/2017-CT (Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017 as amended respectively. - Order No. 20/AAR/2018 - - - Dated:- 28-11-2018 - MS. MANASA GANGOTRI KATA, IRS AND THIRU S. VIJAYAKUMAR, M.SC., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under heading 5208 of first schedule to Customs Tariff Act 1975.; The said bags are manufactured through the processes of cutting, printing (either screen or off-set), sewing and handle fixing (either sticks or same material). 2.2 The Applicant has further stated that the classification of Non-Woven Fabrics of Polypropylene as per the following notes to Chapter 56 of the First Schedule to the Customs Tariff Act 1975, is as follows: 3 Headings 5602, 5603 cover respectively felt and non-wovens, impregnated, coated, covered or laminated with plastics or rubber whatever the nature of these materials (compact or cellular). Heading 5603 also includes Non-woven in which plastics or rubber forms the bonding substance . Similarly, classification in respect of the said goods, namely Bags made up of Non-woven Fabrics of Polypropylene is set as rest by the section notes SI.No.7 (f) to section XI Textile and Textile Articles of the First Schedule to the Customs Tariff Act, 1975, which is as follows: 7. For the purposes of this Section, the expression made up means; (f) assembled by sewing, gumming or otherwise (other than piece goods consisting of two or more length ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting and on printing according to requirements of customers (either screen or off-set), stitch into bags which are used in Show Rooms (Cars, Bikes, Vehicle Parts and Spectacles), Textile Shops, Silk Emporiums, Jewellery Shops, Retail Outlets of Commercial products etc. for the purpose of packing their products to the ultimate customers. They are bags of a kind used for the packing of goods commonly called as Re-usable Shopping Bags, Drawstring Gift Gags, Garment Bags. The Bags have handles made out of stick or same materials. The purchase Invoices indicate purchase of Non-woven Fabrics and plain Cotton cloth. It is seen in the Sale Invoices that the Applicant is variously describing them as Non-woven Bags , Cloth Bags etc. of various sizes. 5.1 The Classification of the bags and the applicability of the Actual Rate / Heading is the issue to be discussed and clarified. In terms of explanation (iii) and (iv) to Notification No. 1/2017 - Central Tax (Rate) dt. 28-06-2017, Tariff Heading, Sub-Heading, Heading and Chapter shall mean respectively a Tariff item, Sub-Heading, Heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6305 39 00 -- Other kg. 25% - 6305 90 00 - Of other textile materials kg. 25% - 6306 TARPAULINE AWNINGS AND SUNBLINDS: TENTS HSN explanatory Notes to chapter 6305 states: This heading covers textile sacks and bags of a kind normally used for the packing of goods tor transport, storage or sale. These articles, which vary in size and shape, include in particular flexible intermediate bulk containers, coal, grain, flour, potato, coffee or similar sacks, mail bags, and small bags of the kind used for sending samples of merchandise by post. The heading also includes such articles as tea sachets. It is evident that bags which are used for packing of goods for transport, storage and sale are covered under 6305. In this case the bags of any materials are used for packing the goods which are then put up for sale, transport or storage. That is such goods because of their very nature, being loose, flowing or in bulk etc, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4202 22 10 --- Hand-bags and shopping bags, of artificial plastic material u 10% 4202 22 20 --- Hand-bags and shopping bags, of cotton u 10% 4202 22 30 --- Hand-bags and shopping bags, of Jute u 10% 4202 22 40 --- Vanity-bags u 10% 4202 22 90 --- Other u 10% 4202 29 -- Other : 4202 29 10 --- Hand bags of other materials excluding wicker-work or basket work u 10% 4202 29 90 --- Other u 10% From the above, it is seen carry bags or shopping bags are covered in the Customs Tariff under CCTH 420222 depending on the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette-cases, tobacco- pouches, tool bags, sports bags, bottle-cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper [other than handbags and shopping bags, of cotton or jute] shall be substituted: (xli) after S. No. 124 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely: - 124A 4203 Articles of apparel and clothing accessories, of leather or of composition leather [other than gloves specially designed for use in sports] 124B 4205 Other articles of leather or of composition leather 124C 4206 Articles of gut (other than silk-worm gut), of goldbeater's skin, of bladders or of tendons ; (xlii) S. No. 125, 126, 127, 128, 129 and 130 and the entries rela ..... X X X X Extracts X X X X X X X X Extracts X X X X
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