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TMI Blog2019 (4) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... mmodity under HSN 3902 10. Therefore the applicant seeks advance rulings on me following issues: 1. The Circular in F.No.93/24/B7-CX. 3 dated 16-06-1987 issued by the Department of Revenue, of Finance, Circular No.4/2018-Customs dated 24.01.2018 issued by the CBIC in F.No.609/12/2018-DBK dated 24-01-2018 and Judgment of the Principal Bench of the CESTAT, New Delhi in "Supreme Industries Vs. CCE = 2004 (5) TMI 378 - CESTAT, NEW DELHI" stated that the HSN code for polypropylene mats is 4601 under Chapter 46 of the Schedule 1 of the Tariff. But the tax officials are not accepting this. What is the correct HSN code for Polypropylene Mag? 2. The tax officials are stating that HSN code 3902 is applicable for Polypropylene Mats. But as per the G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lled 'Satranji" is manufactured by using mono-filament and strip and the like of plastics. The item classified under Chapter 39 of Central Excise and Customs Tariff is for polymers of propylene or of other olefins, in primary forms. Primary forms means 'in liquid form / dude form' and it is not applicable for polypropylene mats which are plaited using polypropylene straw. The matter was examined meticulously, In Supreme Industries Ltd. Vs Commissioner of Central Excise 12004 (170) ELT 432 Del] = 2004 (5) TMI 378 - CESTAT, NEW DELHI, it is specifically stated that the classification of the product "plastic satranji" come under Chapter 46 and not Chapter 39. Moreover. the Central Board of Excise and Customs has examined the whether plastic/m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vered under Chapter 46. As per the Circular No.4/2018-Customs dated 24.01.2018 under F.No.609/12/2018-DBK issued by the Central Board of Excise and Customs, Department of Revenue, Ministry of Finance, certain amendments were brought to all Industry Rates of duty Drawback w.e.f. 25-01-2018. As per this circular, the Polypropylene are classified under tariff item 4601 01. The relevant portion of die circular is as extracted hereunder: "2..... (c) tariff item 391802 viz. Polypropylene mag and the entries related thereto have been deleted from the Drawback schedule. Polypropylene mats will continue to be classifiable under tariff item 460101, which is in alignment with the entry under the Customs Tariff Act, 1975, with the existing rate / ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad as "grass, leaf or reed or fibre products, including mats, pouches, wallets" covered under HSN No.4601 or 4602. Accordingly these specified items became taxable @ 2.5% SGST from 22-09-2017. The items falling under HSN Nos. 4601 and 4602 as specifically mentioned in the Entry at Sl No. 198A of Schedule I; such as goods made from grass, leaf or reed or fibre products, including mats, pouches, wallets was taxable @ 5% from 22.092017. It meant that all raw materials used for the manufacture of these products are vegetable materials and biodegradable. By applying the principles of ejusdem generics, where a law lists specific classes of things and then refers to them in general, the general statement only apply to the same kind of things speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trips and the like of plastics come under the Chapter 46 of Customs Tariff Act, 1975. 2. The tax officials are stating that HSN code 3902 is applicable for Polypropylene Mats. But as per the GST HSN chapter 39, the tariff item 3902 is for POLYMERS OF PROPYLENE OR OF OTHER OLEFINS, IN PRIMARY FORMS,. 'Primary forms' means 'in liquid form/crude form' and how will it be applicable for polypropylene mats which are manufactured by plaiting together (placed side by side and bound together in parallel strands) the polypropylene mono-filament or tubes or straw? Polypropylene mats manufactured by plaiting together the Polypropylene mono-filament or tube or straw come under the Chapter 46 of Customs Tariff Act, 1975. 3. What is the tax rate for po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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