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2019 (5) TMI 1037

nder Chapter Heading 4601 or 3902? - HELD THAT:- In the case at hand as per the manufacturing process furnished, it is seen that pellets on application of heat & air on an extruder machine are converted into the polypropylene tubes(straws)which is used as plaiting material. These are then woven or bound together in sheet form by placing them parallel to each other. After weaving the mats are cut into market size requirement. The subject goods are not classifiable under the chapter 39 as per Chapter Note 2 to chapter 39. Further, they are covered under chapter 46 and more specifically under CTH 46019900. Whether Polypropylene Mats fall under Chapter 39 or Chapter 46 of Central Excise Tariff is considered by the CBEC in Circular F.No. 93/24/87-CX-3 dated 16/06/1987? - HELD THAT:- The Central Excise Tariff was aligned with Customs Tariff after the enactment of the Central Excise Tariff Act 1985 which are in alignment with the HSN. Further, in the case at hand the process of manufacture of the Propylene Mat is similar to that considered in the Circular. Therefore we hold that the ‘Polypropylene Mats’ supplied by the applicant is classifiable under CTH 46019900 - It is p .....

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ax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. Mr. Abubacker Kaleel Rahman (Prop. : M/s. Sameer Mat Industries), No. 18-100, Pazhathottam Main Road, Kanyakumari - 629702 (herein after referred as Applicant) is registered under the GST Act 2017 vide GSTIN: 33AMRPK5234D1Z6 . The Applicant is engaged in the trading business of Polypropylene Mats which are plaited using Polypropylene Straw on wholesale and retail basis. The Applicant has sought Advance Ruling on the following questions: 1. Whether HSN Code for Polypropylene Mat which are plaited using Polypropylene Straw falls under Chapter Heading 4601 or 3902 ? 2. What is the applicable tax rate for the Polypropylene Mats ? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted copy of Challan evidencing payment of application fees of ₹ 5000/- each under Sub-rule (1) of Rule 104 of CGST Rules 2017 and also SGST Rules 2017. 2. The Applicant is engaged in the business of trading of Polypropylene Mats on wholesale and retail basis .....

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pect of classification of Polypropylene Mats. 3.1 The Authorized Representative for the Applicant was heard in the matter on 1 1.03.2019. The learned representative stated that they are trading in Polypropylene Mats which are made of Polypropylene tapes and are bonded together.; that the mats should be classified under CTH 460101 as per Drawback Schedule, HSN, WCO explanatory notes and also case laws submitted. They gave a written submission of the same and agreed to submit manufacturing process with raw materials used, photos of samples and sales invoices. They submitted copies of purchase invoice, where it is called Polypropylene Mat and also commonly called Satranji . In the written submission, they had stated that They are doing polypropylene Mat business; the HSN Code for the mats as given by the Manufacturer is 460101 Chapter Notes to Chapter 46 of the HS Nomenclature 2017 Edition of the World Customs Organisation exactly describes the Polypropylene Mat which is also called as Satranj or Polypropylene Straw Mat. Circular in F.N0. 93/24/87-CX3 dated 16.06.1987 issued by the Ministry of Finance clarified the HSN Code for Polypropylene Mat is 4601 The Judgment of the Customs, Ex .....

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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 interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. 5.1 The relevant Chapter Notes of Chapter 39 of the Customs Tariff and the entries related to the CTH 3902 are examined as under: The Chapter Notes (relevant) are as follows: Notes. 1. Throughout this Schedule, the expression "plastics" means those materials of headings 3901 to 3914 which are or have been capable, either at the moment of polymerisation or at some subsequent stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticiser) by moulding, casting, extruding, rolling or other process into shapes which are retained on the removal of the external influence. Throughout this Schedule any reference to "plastics" also i .....

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le, strips of bark, narrow leaves and raffia or other strips obtained from broad leaves), unspun natural textile fibres, monofilament and strip and the like of plastics and strips of paper, but not strips of leather or composition leather or of felt or non-wovens, human hair, horsehair, textile rovings or yarns, or monofilament and strip and the like of Chapter 54. 3. For the purposes of heading 4601, the expression "plaiting materials, plaits and similar products of plaiting materials, bound together in parallel strands" means plaiting materials, plaits and similar products of plaiting materials, placed side by side and bound together, in the form of sheets, whether or not the binding materials are of spun textile materials. General notes to Explanatory Notes to Chapter 46 of HSN states that, GENERAL In addition to articles of loofah, this Chapter covers semi-manufactured products (heading 46.01) and certain articles (headings 46.01 and 46.02) made by interlacing, weaving or by similar methods of assembling unspun materials, particularly ; (1) Straw, osier or willow, bamboos, rushes, rattans, reeds, chipwood (i.e., wood in thin strips), drawn wood, strips of other vegeta .....

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strands or woven, in sheet form, whether or not being finished articles (for example, mats, matting, screens). The goods of this group are obtained either directly from plaiting materials as defined in the General Explanatory Note to the Chapter or from the plaits or similar products of plaiting materials described in Part (A) above. Those obtained directly from plaiting materials are either formed of strands woven together, generally in the manner of warp and weft fabrics, or made of parallel strands placed side by side and maintained in position in the form of sheets by transverse binding threads or strands holding the successive parallel strands. The woven goods may consist wholly of plaiting materials, or may consist of a warp of plaiting material and a wefi of textile yam, or vice versa, provided that the sole function of the textile yam (apart from incidentally introducing colour effects) is to bind the plaiting substances. Similarly, in the case of the goods made by binding parallel strands of plaiting materials, the hinder may be a plaiting material, a textile yam or some other material. Similar processes of binding together or weaving are also used to obtain goods in sheet .....

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Circular F.No. 93/24/87-CX-3 dated 16/06/1987. The operative portion of the Circular is extracted hereunder: A doubt has been raised as to whether plastic mat/ matting (Satranji) should be classifiable as an article of plastic under Chapter 39, or as a manufacture of plaiting materials under Chapter 46 of the C.E.T. 2. The matter has been examined in the Ministry. It is reported that, for the purpose of manufacture of plastic mat/ matting (Satranji), poly propylene falling under sub-heading No. 3902.10 is first converted into tube form by application of heat and air on an extruder machine, the length of this tube of diameter 1.5 mm. is cut according to the size of the mat to be manufactured. These cut tubes are further used on weaving loom machines to produce Satranji with the help of polyester or cotton yarn as weft material. 3. Articles of plastics remained classified under Heading No. 39.22 of the CET during the period prior to 10-2-1987 (starting from 28-2-1986). From 18-2-1987, articles of plastics stand classified under five different headings i.e. Heading Nos. 39.22, 39.23, 39.24, 39.25 and 39.26 of CET. A perusal of the tariff description of all the above-mentioned headings .....

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entral Excise Tariff was aligned with Customs Tariff after the enactment of the Central Excise Tariff Act 1985 which are in alignment with the HSN. Further, in the case at hand the process of manufacture of the Propylene Mat is similar to that considered in the Circular. Therefore we hold that the Polypropylene Mats supplied by the applicant is classifiable under CTH 46019900. 5.5 It is pertinent to note that the classification of the Propylene Mats under CTH 4601 is in line with the classification in the Drawback Schedule in respect of Polypropylene Mats . 6. On the applicable rate of tax, the product in hand is classified under CTH 4601. Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 and Notification No. II(2)/CTR/532/(d-4)/2017 vide G.o. (Ms) No. 62 dated 29.06.2017 under Schedule Il covers CTH 4601 which is reproduced as follows: Schedule-Il -6% S.No. Chapter Heading/ Sub-heading / Tariff item Description of goods 103. 4601 Plaits and similar products of plaiting materials, whether or not assembled into strips; plaiting materials, plaits and similar products of plaiting materials, bound together in parallel strands or woven, in sheet form, whether or not being finished a .....

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