TMI Blog2021 (9) TMI 1063X X X X Extracts X X X X X X X X Extracts X X X X ..... have passed all the conditionality s placed in the HSN 5903 Chapter Heading description and the Chapter Notes - the subject goods have satisfied the guidelines specified in the Explanatory Notes to HSN 5903. Applicability of Board Circular dated 27-11-98 - HELD THAT:- The applicant cited Board Circular dated 27-11-98 and applicant submitted that said Board Circular cannot be applied in subject matter. It is made clear that even without taking the recourse to apply the said Circular dated 27-11-98 in subject matter, we have arrived at our findings for pronouncement of our Ruling. Thus, we do not delve into the cited Madras High Court order in MADURA COATS LTD. VERSUS CBE. C., NEW DELHI [ 2003 (9) TMI 98 - MADRAS HIGH COURT] which centres around the cited Circular dated 27-11-98. The subject goods are classified at HSN 5903. - GUJ/GAAR/R/45/2021 - - - Dated:- 27-8-2021 - SANJAY SAXENA AND ARUN RICHARD MEMBER Present for the applicant : Shri Avinash Poddar, Advocate Brief Facts 1. M/s. Supercoat India submits that it supplies partially coated Polyester fabric (knitted or woven) or any other kind of partially coated (with scattered micro-dot print) Fabric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is undertaken by cooling drum. 5. Characteristics of the Finished Product- a. The product is partially coated on one side with scattered dots. b. The dots are elevated in a manner that the fabric can be attached to another fabric and used for interlining. 6. The applicant vide letter dated 30-7-21 has submitted as follows: (i) The product is used as an interlining fabric for a garment to give a suitable stability or appearance. The finished product is affixed with garments by applying heat and pressure for a certain time. The lining which is fixed with garments in above mentioned fashion is classified as fusible interlining fabric. (ii) The main raw material used for manufacturing the product is a polyester Fabric. The woven or knitted polyester fabric is passed over through heated rolls having high temperature. Then the cloth is pressed against printing rolls having dots engraved on it. High density polyethene powder is taken in the hopper seated on the printing roll, filling the dots. The extra powder is scrapped and the cloth is finally passed through the heated chamber where the plastic melts and the entire surface is coated with plastic. PES powder i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. (e) The applicant submits that from the above it is apparently clear that product will not be classified under heading 5903 as it is covered under point no. 4 of Chapter Note 2. Accordingly, it can be said that if the product is not classified under heading 5903, then the applicant should classify the product under chapter 50 to 55 or 58 or 60. (f) The applicants refer to the Chapter 50 to55, 58 and 60. It submitted that its product will not fall under Chapter 50, 51, 52 53 as the main raw material is polyester. They use the filament fibre i.e. polyester which is a synthetic fibre. Therefore, the polyester fusible lining can be classified under Chapter 54. (g) The applicant submitted the various amendments and circulars which were relevant for classification of interlining fabric. For ready reference the details of the same are given as follows- (i) Chapter note 2(c) to chapter 59 which dealt with Textile fabrics, partially or discretely coated with plastic by dot printing process was omitted w.e.f. 16.03.1995. Circular no. 433/66/98-CX dated 27-11-1998 was issued by CBEC wherein the clarification was given regarding the fusible interlining which was inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erlining Fabrics of Cotton will be classified under Heading 5903 2 19.03.2020 AAAR, West Bengal Sadguru Seva Paridhan(P.) Ltd. Upheld order of AAR- Fusible interlining Cloth will be classified under Heading 5903 3 12.03.2020 AAR, Uttarakhand Ruby Mills Ltd. Fusible Interlining Fabrics of Cotton will be classified under Heading 5903 4 11.11.2019 AAR, West Bengal Sadguru Seva Paridhan(P.) Ltd. Fusible interlining Cloth will be classified under Heading 5903 5 30.01.2019 AAR, Uttarakhand M/s Goodswear fashion Pvt. Ltd Based on the lab reports, the Polyester Viscose Fusing interlining woven Fabric will be covered under Chapter 55 to 58 and not chapter 59. 7.1 The applicant has submitted that in the case of M/s Goodsyear Fashions Pvt. Ltd. the lab reports with respect to fabric wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Ans . The fabric does not withstand any water pressure. It becomes wet as soon as it comes in contact with water. Revenue s Submission 9. The revenue vide letter dated 20-4-21issued by the Additional Commissioner submitted that as per the Chapter Note 2 of Custom Tariff Act, 1975 textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square meter and whatever the nature of the plastic material (compact or cellular) are covered under chapter 5903. Therefore the subject goods are classified at chapter 5903. Question on which Advance Ruling is sought 10. Whether the Partially Coated Polyester Fabric (Knitted or Woven) or any other partially coated Fabric will be covered under relevant chapter headings (50 to 55, 58 or 60) or under Tariff Heading 5903? Personal Hearing 11. Personal hearing in the matter was accorded on 17-6-21. Shri Avinash Poddar, CA Advocate appeared for hearing (video conferencing) and requested for adjournment. As requested by the applicant for adjournment, next hearing was accorded on 30-6-21. Due to further request for adjournment, another hearing was granted on 27-7-21. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er their weight per m2 and whatever the nature of the plastic component (compact or cellular), provided: (1) That, in the case of impregnated, coated or covered fabrics, the impregnation, coating or covering can be seen with the naked eye otherwise than by a resulting change in colour. Textile fabrics in which the impregnation, coating or covering cannot be seen with the naked eye or can be seen only by reason of a resulting change in colour usually fall in Chapters 50 to 55, 58 or 60. Examples of such fabrics are those impregnated with substances designed solely to render them crease-proof, moth-proof, unshrinkable or waterproof (e.g., waterproof gabardines and poplins), Textile fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments are also classified in Chapter 50 to 55, 58 or 60. (2) That the products are not rigid, i.e. they can, without fracturing, be bent manually around a cylinder of a diameter of 7 mm, at a temperature between 15 degrees centigrade and 30 degrees centigrade. (3) That the textile fabric is not completely embedded in, nor coated or covered on both sides with, plastics. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e between 15oC and 30oC The goods can be bent manually. Further we note that the applicant has submitted letter dated 31-7-21 mentioning that the fabric bends without fracturing around a cylinder of 7mm at a temperature between 15 degree to 30 degree C. 4 HSN 5903 does not apply to products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (Chapter 39) The dot coating is on one side of the fabric. Dot coating is not on both sides. 5 HSN 5903 does not apply to fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments (usually Chapters 50 to 55, 58 or 60) The fabric is partially coated on one side and the dots are elevated in a manner that the fabric can be attached to another fabric and used for interlining. The use of the subject goods is that it is used as interlining fabric in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he HSN 5903 Chapter Heading description and the Chapter Notes, as aforementioned in the Table. We find that the subject goods have satisfied the guidelines specified in the Explanatory Notes to HSN 5903. 19. We note that the applicant cited Board Circular dated 27-11-98 and applicant submitted that said Board Circular cannot be applied in subject matter. We make it clear that even without taking the recourse to apply the said Circular dated 27-11-98 in subject matter, we have arrived at our findings for pronouncement of our Ruling. Thus, we do not delve into the cited Madras High Court order which centres around the cited Circular dated 27-11-98. 20. We note that the applicant has relied on cited AAR and AAAR Rulings. We have perused the cited Rulings and find that in few AAR Rulings, such as in M/s Sadguru Seva Paridhan pvt ltd, fusible interlining cloth was classified at Heading 5903; in both the cases of M/s Ruby Mills and M/s Ashima Dyecot it was Ruled that fusible interlining fabric of cotton is classified at Heading 5903 . However, even though few Rulings cited by applicant classify fusible interlining cloth at Heading 5903, we do not delve into these Rulings as we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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