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2019 (3) TMI 832

t if non-woven are impregnated, coated or covered with perfume or cosmetic, the product would fall under Chapter Heading 3307 and in case such non-woven are impregnated, coated or covered with soap or detergent, the product would fall under Chapter Heading 3401 - These products would also not fall under Chapter Heading 4818 as the said heading covers the products of paper, cellulose wadding etc. and not of non-wovens - also, Chapter Heading 9619 covers ‘Sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material’ which heading does not specifically cover the aforesaid products. - Thus, the products (a) Wet Baby Wipes, (b) Wet Face Wipes, (c) Bed and Bath Towels and (d) Shampoo Towels are appropriately classifiable under Heading 3307 or 3401 depending upon their constituents. If these products are impregnated with perfumes or cosmetics, the same would fall under HS code 3307 and if they are coated with soap or detergent, then it would fall under HS code 3401 - GST rate prescribed for the applicable HS code shall be charged under Central Goods & Services Tax Act, 2017 and Gujarat Goods & Services Tax Act, 2017 and notifications i .....

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urface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading 3401 4818 Toilet paper and similar paper, cellulose wadding or webs of cellulose fibres, of a kind used for household or sanitary purposes, in rolls of a width not exceeding 36 cm, or cut to size or shape; handkerchiefs, cleansing tissues, towels, table cloths, serviettes, napkins for babies, tampons, bed sheets and similar household, sanitary or hospital articles, articles of apparel and clothing accessories, or paper pulp, paper, cellulose wadding or webs of cellulose fibres 5603 Nonwovens, whether or not impregnated, coated, covered or laminated 9619 Sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material Any Chapter Goods which are not specified in Schedule I, II, IV, V or VI 3.2 The applicant submitted that the applicant s Wet Baby Wipes may fall under any of the above categories owing to the overlapping nature of the description of the goods provided under the Rate Notifications. Considering that the Wet Baby Wipes are nonwovens used for cleansin .....

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Code as well as GST Rate for the Applicant s Wet Baby Wipes. 4.1 With regard to Wet Face Wipes, the Applicant has considered the applicability of the following HSN entries along with the descriptions under the Rate Notifications: HSN Code Description of Goods as per Rate Notifications 3307 Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties; such as Pre-shave, shaving or after-shave Preparations, Shaving cream, Personal deodorants and antiperspirants 3401 30 Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap; paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent 3402 Organic surface-active agents (other than soap); surface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading 3401 4818 Toilet paper and .....

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/2017-State Tax (Rate) dated 14.11.2017. 7.2 The applicant also submitted manufacturing process of Wet Baby Wipes, Wet Face Wipes, Bed and Bath Towels and Shampoo Towels. They also submitted a copy of License Number 7/C/UA/2017 dated 24.03.2017 issued under the Drugs and Cosmetics Act, 1940. 8. The applicant, vide letter dated 03.04.2018 submitted copy of Ruling No. AAR/CE/01/2018 dated 16.03.2018 passed by the Authority for Advance Ruling (Customs, Excise and Service Tax) under the Central Excise Act, 1944 wherein it has been held that Baby Wipes, Facial Wipes, Make-up remover wipes and Bed Bath Wipes are classifiable under Heading 5603. The applicant submitted that it is using similar raw material and ingredient and have same manufacturing process and is supplying the same products which are mentioned in the said Advance Ruling. The applicant requested that the said Ruling may be taken on record and may be taken into consideration before passing of Ruling in its application. It is further requested that in case it is held that the Ruling by the Advance Ruling Authority (Central Excise) is correct ruling on classification, the products of the applicant may also be classified under .....

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ase of L.M.L. Ltd. Vs. Commissioner of Customs [Civil Appeal No. 3764 of 2003, decided on 21.09.2010 reported at 2010 (258) ELT 321 (S.C.)] = 2010 (9) TMI 12 - SUPREME COURT OF INDIA has held as follows :- 12. In Collector of Central Excise, Shillong v. Wood Crafts Products Ltd. reported in (1995) 3 SCC 454 = 1995 (3) TMI 93 - SUPREME COURT OF INDIA, it was held by this Court that as expressly stated in the statements of objects and reasons of the Central Excise Tariff Act, 1985, the Central Excise Tariffs are based on the Harmonious System of Nomenclature (HSN) and the internationally accepted nomenclature was taken into account to reduce disputes on account of tariff classification. Accordingly, for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the Harmonious System of Nomenclature (HSN). Although, the decision in the case of Woodcraft Products (supra) dealt with the interpretation of the provisions of the Central Excise Tariff there can be no doubt that the HSN Explanatory Notes are a dependable guide even while interpreting the Customs Tariff. 13.1 The applicant has submitted the composition, siz .....

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dients and Function: Aqua Solvent Chlorhexidine Gluconate 20% Anti-bacterial Propylene Glycol Solvent Euxyl K703 Preservatives Glycerine Moisturiser Polysorbate - 20 Solubiliser Dehytone Dc Cleansing Agent Cocamidopropylbetaine Cleansing Agent Aloevera Gel Skin conditioner Dc-193 Skin conditioner Peg-40 Hydrogenated Castor Oil Solubilizer Fragrance Fragrance Sodium Gluconate Chealating agent Citric Acid Buffering agent 13.4 The applicant has submitted the composition, size and use of Shampoo Towels as follows :- Fabric: Non-woven spun lace fabrics of 40-60 grams per square meter. Size of each wipe: 300 mm x 240 mm Use [As per declaration on the package]: Cleans and shampoos hair in minutes. No water required. No rinsing required, Easy & convenient for bedridden patients or people requiring partial assistance. Easy to use & dispose. Ingredients and Function: Ingredients Function Aqua Solvent Propylene Glycol Solvent Euxyl K703 Preservatives Chlorhexidine Gluconate 20% Anti-bacterial Fragrance Fragrance Dc-193 Hair conditioner Capb Foaming agent Polyquaternium-10- Hair conditioner Plantacare®2000 Up Foaming agent Polysorbate - 20 Solubiliser Peg-40 Hydrogenated Castor Oil .....

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ls and functions of such ingredients mentioned in the copy of said licence and the list of ingredients and their functions submitted by the applicant indicates that these ingredients act as solvent, anti-bacterial, preservatives, moisturizer, solubiliser, cleansing agent, skin conditioner, fragrance, chelating agent and buffering agent. 14.4 The product Shampoo Towels is manufactured with the use of non-woven spun lace fabrics of 40-60 grams per square meter, the size of each wipe being 300 mm X 240 mm. The Licence issued under Drugs and Cosmetics Act, 1940 for the said product, a copy of which is submitted by the applicant indicates that each wipe contains minimum 8.92 g. of lotion and each Dry Wipe (Fabric) weight approx - 2.88 g. . The list of ingredients used in Shampoo Towels and the list of ingredients and function of such ingredients submitted by the applicant indicates that these ingredients act as solvent, preservatives, anti-bacterial, fragrance, hair conditioner, foaming agent, solubiliser, chelating agent and buffering agent. 15. The applicant has submitted that the aforesaid products may fall under Chapter Heading 3307, 3401 30, 3402, 4818, 5603, or 9619 owing to the o .....

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that the weight of the lotion so impregnated is more than the weight of the dry wipes (fabrics). From the functions of the ingredients used in the aforesaid products and the copy of manufacturing license of the said product issued under the Drugs and Cosmetics Act, 1940 submitted by the applicant, the ingredients used in the said products appear to be in the nature of cosmetic or perfume rather than in the nature of soap or detergent. The applicant has not submitted that the ingredients used in these are in the nature of soap or detergent. In view thereof, these products appeal appropriately classifiable under Chapter Heading 3307 rather than under Chapter Headings 3401, 3402 or 5603. 16.7 These products would also not fall under Chapter Heading 4818 as the said heading covers the products of paper, cellulose wadding etc. and not of non-wovens. 16.8 Chapter Heading 9619 covers Sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material which heading does not specifically cover the aforesaid products. 17.1 We have also gone through the Ruling No. AAR/CE/01/2018 dated 16.03.2018 passed by the Authority for Advance Ruling (Customs, Ex .....

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d references have been received requesting for correct classification of these products. As per the references, these products are currently being classified under different HS codes namely 3307, 3401 and 5603 by the industry. 8.2 Commercially, wipes are categorized into various types such as baby wipes, facial wipes, disinfectant wipes, make-up remover wipes etc. These products are generally made by using non-woven fabrics of viscose and polyviscous blend and are sprinkled with demineralized water and various chemicals and fragrances, which impart the essential character to the product. The base raw materials are moisturising and cleansing agents, preservatives, aqua base, cooling agents, perfumes etc. The textile material is present as a carrying medium of these cleaning/wiping components. 8.3 According to the General Rules for Interpretation [GRI- 3(b)] of the First Schedule to the Customs Tariff Act (CTA), 1975, Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives .....

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