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TMI Blog2020 (8) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... cess 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 process of embedding coir yarn into vinyl (PVC) compound and curing by heating / cooling is rightly covered under the description "coir mats, mattings and floor covering"? iii. Whether "coir mats / mattings / floor covering with vinyl (PVC) backing" manufactured by the process of embedding coir yarn into vinyl (PVC) compound and curing by heating / cooling, would merit classification under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 the moving continuous Teflon belt a continuous embryonic mat is produced consisting of a continuous layer of uncured PVC and a substantially continuous series of cut coir yarn pieces extending up there from. That embryonic mat is then transported over the teflon belt through progressive heating and cooling areas to cure the PVC compound so as to form a well cured PVC backing with evenly cut co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bber. 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 adhesion or heat or a combination of both or by ultrasonic welding. From the above explanation it is amply clear that the process of manufacture of the impugned goods as explained above would squarely fall under the manufacturing method as mentioned in the Explanatory Note to Heading 5705. There are no needles or hooks used in the manufacture of the impugned product and also the yam is not tufted into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 (PVC) compound and curing by heating / cooling is rightly covered under the description "coir mats, mattings and floor covering"? No. PVC Tufted Coir Mats and Matting cannot be considered as coir mats, mattings and floor coverings covered under HSN 5702 or 5705 and is appropriately classifiable under HSN 5703 90 90 as tufted mats / matting / floor coverings of coir. iii. Whether "coir mats / mattings / floor cover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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