TMI Blog2020 (8) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... Tariff? HELD THAT:- The manufacturing of PVC tufted coir mats/ matting/floor coverings is done using technologically advanced machines. The raw materials used for its manufacture are Coir yarn, PVC resin, Dolomite filler, Pigment, etc. The coir as well as PVC, chemicals, fillers etc have equal importance. Hence PVC tufted coir mats/ matting/floor coverings cannot be classified as coir mats and mattings. Coir mats, mattings and floor coverings covered under HSN 5702, 5703 and 5705 are taxable at the rate of 5 % GST as per Sl No. 219 of Schedule I of Notification No.01/2017-CT (Rate) dated 28-06-2017 as amended. This entry covers only the commodities which are manufactured exclusively using coir fibre. If any, PVC or rubber or any other m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v Balagopal.M 1. The applicant is engaged in manufacture of PVC backed coir mats / mattings / floor coverings by a special moulding process. There is confusion among the industry and trade as to whether the mats manufactured by them are to be classified as tufted under Heading 5703 or under 5705. Hence the applicant requested advance ruling on the following; i. Whether the process of manufacture (embedding coir yarn into vinyl (PVC) compound and curing by heating / cooling) is Tufting or a process other than those processes mentioned in Headings 5701 to 5704 of the Customs Tariff and the HSN Explanatory Notes to Chapter 57? ii. Whether coir mats / matting / floor covering with Vinyl (PVC) backing manufactured by the proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llotine blades that run across the entire width of the machine chop the Coir yarns in to pre-determined lengths. These bits of coir yarn later form the pile of the mat. The chopped Coir yarns at horizontal orientation at the time of chopping are then directly fed down a chute that turns it around 90 degrees to vertical orientation by the time they reach the top surface of the PVC compound moving underneath on the continuous Teflon belt. At this point, there is a reciprocating compactor that vertically pushes the short length of cut coir yams in to the PVC compound just enough so that their lower end gets embedded in the PVC layer. In this manner with constant regulated feeding of coir yarn through the cutting head on to the PVC compound in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into a pre-existing backing (usually a woven fabric or a nonwoven) thus producing loops, or, if the needles and hooks are combined with a cutting device, tufts. The yarns forming the pile are then normally fixed by a coating of rubber or plastics. Usually before the coating is allowed to dry it is either covered by a secondary backing of loosely woven textile material, eg; Jute, or by foamed rubber. 4. As per the HSN Explanatory Notes, Heading 5705 covers carpets and textile floor coverings, other than those covered by a more specific heading of Chapter 57. It includes bonded pile carpets, where the pile use surface is bonded either to a substrate or directly to an adhesive which forms the substrate. The bonding may be achieved by adhes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned product is that of coir and is marketed / sold as coir mats / matting / floor covering only. The goods falling under Chapter 57 should be classified only on the basis of the nature of textile material used as surface when put in to use and on the process of manufacturing. The material used for or as backing / bonding of the textile material has no relevance in the classification of the goods. The Coir Board by clarification dated 12.04.2016 had clarified that the PVC backing of the coir products does not, in anyway alter the basic characteristics of coir products and hence PVC backed tufted coir mats/PVC backed coir mats etc has to be considered and classified as coir products only. 6. The matter was examined meticulously. The man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory Notes to Chapter 57? Manufacture of PVC Tufted Coir Mats / Mattings / Floor coverings by the process of embedding coir yarn into PVC cannot be considered as textile floor coverings of coir covered under HSN 5702, 5703 or 5705. The process undertaken is a tufting process and if any, PVC or rubber or any other materials are tufted on the textile of coir, which is used as floor mats or mattings, it will come under the Customs Tariff Head 5703 90 90 and is liable to GST at the rate of 12% as per Entry at Sl No. 144 of Schedule II of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. ii. Whether coir mats / matting / floor covering with Vinyl (PVC) backing manufactured by the process of embedding coir yarn into vinyl ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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