TMI Blog2023 (3) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... TIC INDUSTRIES LIMITED [ 2018 (8) TMI 1650 - APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA ] is not legally tenable. Thus, the impugned goods i.e. PVC floor mats for use in cars supplied by the applicant is classifiable under CTH 8708 applicable rate of GST would be 28% - MILIND KAVATKAR AND AMIT KUMAR MISHRA, MEMBER Present for the applicant : Shri Nishant C Shukla, Advocate Brief facts: M/s. Manishaben Vipulbhai Sorathiya, [Trade name : Autotech], A-14/8, Ground floor, Road Mp/ 7, Udhyognagar, Udhna, Surat- 394 210 [for short -'applicant'] is registered under GST and their GSTIN is 24HHZPS8418D1ZL. 2. The applicant, a proprietary concern is engaged in the business of manufacture supply of floor mats for four wheel motor vehicles [cars]. The floor mats are essentially made of PVC [poly vinyl chloride] material. 3. The PVC floor mat as per the applicant is made of the following raw materials viz:- [a] PVC leather commonly known as artificial leather; [b] PU Foam also known as polyurethane foam; [c] XLPE foam known as cross linked polyethylene foam; [d] PVC mat, commercially known as Heel pad. 4. According to the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriate classification rate of GST applicable on supply of PVC floor mats [Cars] under the CGST SGST? 9. Personal hearing was granted on 22.12.2022 wherein Shri Nishant C Shukla, Advocate appeared and reiterated the facts as stated in the application. Discussion and findings 10. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 11. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made during the course of personal hearing. We have also considered the issue involved, the relevant facts the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought. 12. We find that the applicant has requested a ruling about the appropriate classification of the floor mats made up of PVC manufactured by him and used in motor cars. 13. Under the GST regime, classification of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er vinyl chloride copolymers 3904 50 - Vinylidene chloride polymers 3904 50 10 --- Copolymer of vinylidene chloride with a crylonilrite, in the form of expansible beads of a diameter of 4 micrometers or more but not more than 20 micrometers 3904 50 90 --- Other - Fluro-polymers 3904 61 00 -- Polytetrafluroethylene -- Other 3904 69 10 Poly (vinyl fluoride), in one of the forms mentioned in Note 6(b) to this Chapter 3904 69 90 --- Other 3904 90 - Other 3904 90 10 --- Chlorinated poly vinyl chloride (CP VC) resin 3904 90 90 --- Other 3918 FLOOR COVERINGS OF PLASTICS, WHETHER OR NOT SELF-ADHESIVE, IN ROLLS OR IN THE FORM OF TILES; WALL OR CEILING COVERINGS OF PLASTICS, AS DEFI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 5703 10 20 --- Mats and matting 5703 10 90 --- Other 5703 20 - Of nylon or other polyamides 5703 20 10 --- Carpets, carpeting and rugs 5703 20 20 --- 100% polyamide tufted velour, cut pile loop pile carpet mats with jute, metre, whichever rubber latex is higher or PU foam backing 5703 20 90 --- Other 5703 30 - Of other man-made textile materials 5703 30 10 --- Carpets, carpeting and rugs 5703 30 20 --- 100% polypropylene carpet mats with jute, rubber, latex or PU foam backing 5703 30 90 --- Other 5703 90 - Of other textile materials 5703 90 10 --- Carpets and other floor coverings, of cotton, other than durries 5703 90 20 --- Carpets and floor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The expressions parts and parts and accessories do not apply to the following articles, whether or not they are identifiable as for the goods of this Section:- (a) joints, washers or the like of any material (classified according to their constituent material or in heading 8484) or other articles of vulcanised rubber other than hard rubber (heading 4016); (b) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39): (c) articles of Chapter 82 (tools); (d) articles of heading 8306; (e) machines and apparatus of headings 8401 to 8479, or parts thereof, other than the radiators for the articles of this Section, articles of heading 8481 or 8482 or, provided they constitute integral parts of engines and motors, articles of heading 8483; (f) electrical machinery or equipment (Chapter 85); (g) articles of Chapter 90; (h) articles of Chapter 91: (ij) arms (Chapter 93): (k) lamps or lighting fittings of heading 9405; or (I) brushes of a kind used as parts of vehicles (heading 9603). Note 3 of Section XVII states as follows . 3. References in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excluded by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note). Parts and accessories of this heading include. (A) ...................... (B) Parts of bodies and associated accessories, for example, floor boards, sides, front or rear panels, luggage compartments, etc.; doors and parts thereof; bonnets (hoods); framed windows, windows equipped with heating resistors and electrical connectors, window frames; running-boards; wings (fenders): mudguards: dashboards; radiator cowlings; number-plate brackets; bumpers and over-riders; steering column brackets; exterior luggage racks; visors; nonelectric heating and defrosting appliances which use the heat produced by the engine of the vehicle; safety seat belts designed to be permanently fixed into motor vehicles for the protection of persons; floor mats (other than of textile material or unhardened vulcanized rubber), etc. Assemblies (including unit construction chassis-bodies) not yet having the character of incomplete bodies, e.g., not yet fitted with doors, wings (fenders), bonnets (hoods); and rear compartment covers, etc., are classified in this heading and not in heading 87. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the goods manufactured by the applicant the question of the PVC mat of the applicant falling within the ambit of 390410, does not arise. 19. Even otherwise, ongoing through the description of the goods in chapter 39 under the Customs Tariff, we find the description as under: 3901 I. Primary Forms Polymers of Ethylene, In Primary Forms 3902 Polymers of Propylene or of other olefins. In Primary Forms 3903 Polymers of Styrene. In Primary Forms 3904 Polymers of Vinyl Chloride or of Other Halogenated Olefins, In Primary Forms 3905 Polymers of Vinyl Acetate or Of Other Vinyl Esters, In Primary Forms; Other Vinyl Polymers In Primary Forms 3906 Acrylic Polymers In Primary Forms 3907 Polyacetals. Other Polyethers Epoxide Resins, In Primary Forms; Polycarbonates, Alkyd Resins, Polyallylesters Other Polyesters, In Primary Forms 3908 Polyamides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factured goods, is an admixture of PVC leather, PU Foam, XLPE foam which is bound together by using a cotton thread and adhesive, consequent to which a Heel pad is affixed. 22. A conjoint reading of notes 1 2 of the chapter 39, clearly depicts that plastic in terms of chapter 39, will not cover any material which is classified as textile material under section XI of the CTH. Relevant notes to section XI of Textiles and Textile articles, states as follows:- 1. This section does not cover. I (a) ........................ (h) Woven, knitted or crocheted fabrics, felt or non-wovens, impregnate covered or laminated /with plastics, or articles thereof, of Chapter 39 23. Thus, classification needs to be finalized after deciding the nature of the material used to manufacture PVC floor mats used in motor vehicles. Only the goods made up of textile articles, would get covered under section XI [Textiles Textiles articles]. However, going by the constituents/ingredients present in the applicants impugned product, the same would get excluded from section XI, by virtue of section note 1(h), supra. 24. Thus the question now which remains to be answered is whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded wire, ropes, cables, plaited bands, slings and the like, of iron or steel, not electrically insulated 7315 Chain and parts thereof, of iron or steel 7317 Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper 7318 Screws, bolts, nuts, coach-screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel What is therefore excluded is similar goods as mentioned above of plastics falling under Chapter 39. As is evident, PVC floor mats, for four wheel motor vehicles, does not fall in the exclusion. Para (A) of the HSN notes further gives the details of the parts and accessories excluded via note 2 to Section XVII, which states as follows [relevant extract],- (2) Parts of general use as defined in Note 2 to Section XV, for example, cable and chain (whether or not cut to length or equipped with end fittings, othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below for ease of reference: These two appeals against the decision of the Customs Excise Service Tax Appellate Tribunal (CESTAT) rendered on 16th July, 2008 require adjudication on the question as to whether car matting would come within Chapter 57 of the First Schedule to the Central Excise Tariff Act, 1985 under the heading Carpets and Other Textile Floor Coverings or they would he classified under Chapter 87 thereof, which relates to Vehicles other than Railway or Tramway Rolling-Stock and Parts and Accessories Thereof '. The appeals are against a common decision and we shall also deal with both these appeals together in this judgment. The respondent-assessee want their goods to be placed under Chapter heading 5703.90.... 24. The core issue in these appeals is as to whether car mats come under chapter-heading 57.03 or not. In the second appeal, the numerical representation of the product, as claimed by the assessee, was different but that difference is not of much significance. Revenue's case is that the goods are manufactured in such a way that these can be used as accessories of cars. The Tribunal found that though in common parlance the products invo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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