9911796707
TMI Blog2021 (12) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Private Limited Company, registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST Act respectively), engaged in Import and trading of baby wipes. A dispute on classification of baby wipes has been settled by the order of Commissioner of Customs (Appeals-II), Chennai as per which the classification of baby wipes is 96190010. The applicant has been classifying the baby wipes under the heading 9619 0010 and discharging the duty accordingly. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riff heading 96190010. 5.2 The Applicant has stated that a dispute arose on classification of the said item in 2014 for which they had preferred an Appeal before the Commissioner of Customs (Appeal-II), Chennai, who passed a speaking order vide Order No.56/2014 dated 31st October 2014 and upheld the classification of 99160010. The applicant submitted the following points with regard to the said order: a. The Bill of Entry was subjected to First check Appraisement to verify the classification and representative samples were drawn for lab testing. b. The Chemical Engineer vide report No.276/ MCH/ 09.06.2014 has reported that the samples are non-woven articles and the stand taken by Lower Adjudication Authority who had classified the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sification of their product would be 3307 9090, in terms of the circular supra. PERSONAL HEARING PROCEEDINGS HELD ON 07.10.2021. 7. Sri Sanjay Singhal, Chartered Accountant & Authorised Representative of the applicant appeared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products are currently being classified under different HS codes namely 3307, 3401 and 5603 by the industry. 8.2 Commercially, wipes are categorized into various types such as baby wipes, facial wipes, disinfectant wipes, make-up remover wipes etc. These products are generally made by using non-woven fabrics of viscose and polyviscous blend and are sprinkled with demineralized water and various chemicals and fragrances, which impart the essential character to the product. The base raw materials are moisturising and cleansing agents, preservatives, aqua base, cooling agents, perfumes etc. The textile material is present as a carrying medium of these cleaning/ wiping components. 8.3 According to the General Rules for Interpretation [GRI- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or covered with soap or detergent whether or not perfumed". 8.5 Further, as per the explanatory notes to the HSN, the heading 3307 includes wadding, felt and nonwovens impregnated, coated or covered with perfume or cosmetics. Similarly, as per explanatory notes to the HSN, the heading 3401 includes wipes made of paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent, whether or not perfumed or put up for retail sale. 8.6 Thus, the wipes of various kinds (as stated above) are classifiable under heading 3307 or 3401 depending upon their constituents as discussed above. Therefore, if the baby wipes are impregnated with perfumes or cosmetics, then the same would fall under HS code 3307 and would attract 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsorbent hygienic nursing pads, napkins(diapers) for adults with incontinence and pantyliners, of any material. In general, the articles of this heading are disposable. Many of these articles are composed of (a) an inner layer (e.g., of nonwovens) designed to wick fluid from the wearer's skin and thereby prevent chafing; (b) an absorbent core for collecting and storing fluid until the product can be disposed of; and (c) an outer layer (e.g., of plastics) to prevent leakage of fluid from the absorbent core. The articles of this heading are usually shaped so that they may fit snugly to the human body. This heading also includes similar traditional articles made up solely of textile materials, which are usually re-usable followin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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