2018 (8) TMI 1650 – APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA – 2018 (16) G. S. T. L. 287 (App. A. A. R. – GST) – Classification of goods – rate of GST – floor mats / (floor coverings) made of (PVC textiles) PVC, known as PVC Carpet Mats or Floor coverings or Textile floor covering made up of PVC – appellant had proposed the classification of the product under chapter 5705 and being covered under entry no 146 of schedule II of the notification no 1/2017-CT(rate) and 1/2017-ST (rate) and attracting tax at the rate of 12% in total – AAR classified the product under chapter heading 3918 and rejected the classification of the appellant under chapter 5705 – Challenge to Advance Ruling decision.
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Whether the goods in question are classifiable under Tariff Item 3918 as held by AAR, or 5705 as claimed by the Appellant?
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Held that:- On perusal of the sample produced, it is found that it is in the form of a plastic web on exposed surface and with a sheet-like backing of plast
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d the said goods to be 'Non-woven' and impregnated/coated (as per their manufacturing process). Thus in view of Note 1(h) of Section Xl, the said goods are apparently excluded outright from this section. If the said goods are excluded from the section Xl, their classification under any Chapter under the Section would also be ruled out – The exposed surface of the article does not contain fabric or fibres, filaments or yarns, but is a web of PVC made from a moulding process in which T-shaped monofilaments result in the intermediate process. It is not the case of the appellants that that they manufactured the non-woven product (PVC web) by use of monofilament yarns. There are no identifiable fibres, filaments or yarns in the exposed surface of their product and the web like structure made from 100% PVC therefore does not qualify for the textile materials as specified in Note 1 to Chapter 57.
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The appellant is already a manufacturer of the said goods and classifying the same under Ch
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UNGITA SHARMA MEMBER PROCEEDINGS (under Section 101 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST 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 MGST Act. The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by M/S. National Plastics Industries Limited (herein after referred to as the Appellant ) against the Advance Ruling No. GST-ARA-17/2017/B-23 dtd. 02.04.2018. Brief Fact of the Case A) M/S National Plastics is a company engaged in the manufacture of floor mats / (floor coverings) made of (PVC textiles) PVC, k
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mm. b) Under Stage 2, the web formed in Stage 1 is impregnated with a lamination of clear coat of liquid PVC and is further made to fall over the liquid PVC layer on a conveyer belt. Then it passes through the heated conveyor oven to solidity the liquid PVC backing to the web. c) The resultant product is a product of running length. It is then cut into size as given specified by the customer. A sample of the product to be classified is attached as annexure 10 for ready reference. C) On 03.01.2018, The appellant filed the Advance ruling application under section 97 of the CGST Act, 2017 before the advance ruling authority (hereafter referred as the 'Authority') seeking the ruling on the correct classification and the rate of GST applicable for the abovementioned product. The appellant had proposed the classification of the product under chapter 5705 and being covered under entry no 146 of schedule II of the notification no 1/2017-CT(rate) and 1/2017-ST (rate) and attracting tax
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reinafter referred to as Notification No. 1/2017-CGST ) and Notification no. 1/2017-State Tax (Rate) respectively which specifies the rate of CGST and SGST respectively to be levied on different products along with their corresponding Chapter/Heading/Sub-Heading/Tariff item. Thus, the rate of GST will depend on the schedule of the notification under which the goods are being classified. Further, Notification No. 1/2017-CGST specifically provide that: Explanation – For the purposes of this Schedule, – (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975, (iv) The rules for the interpretation of the First Schedule to the Custom Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. Thus, for the purpose of GST, Classific
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7-Central Tax (Rate) dated 28.06.2017 amended by notification No. 41/2017-Central Tax (Rate) dated 14.11.2017 issued under CGST Act, covers the chapter heading 3918, the same being reproduced below: 104A 3918 Floor coverings of plastics, whether or not self-adhesive, in rolls or in form of tiles; wall or ceiling coverings of plastics Tariff Item Description of goods Unit (1) (2) (3) 3918 Floor coverings of plastics, whether or not self-adhesive, in rolls or in form of tiles; wall or ceiling coverings of plastics , as defined in note 9 to this chapter Kg 3918 10 Of polymers of Vinyl Chloride: Kg 3918 10 10 Wall or ceiling coverings combined with knitted or woven fabrics nonwovens or felts Kg 3918 10 90 Others Kg 3918 90 Of Other Plastics Kg 3918 90 10 Floor coverings of linoxyne Kg 3918 90 20 Wall or ceiling coverings combined with knitted or woven fabrics, nonwovens or felts Kg 3918 90 90 Others Kg Note-1 to chapter 39 defines the word plastics as follows: – 1. Throughout this Schedule
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ip;…………. (p) goods of Section Xl (textiles and textile articles); (q)…………… Thus, on combined reading of note 1 and 2 of the chapter 39, the term plastic for the purpose of chapter 39 will not cover any material which is classified as textile material under section XI of the Tariff. Therefore, the classification can be finalized only after deciding the nature of the material of which the impugned product is made up of. c) The term 'textile' or 'textile material l is not defined in the GST Act. Therefore, reference can be taken from various Textile Dictionaries and Encyclopaedia to ascertain the meaning of this term. (i) Encyclopaedia of Textiles, Fibres and Nonwoven Fabrics edited by Martin Grayson and published by Wiley-Inter science Publication has defined the term 'textile material'. This encyclopaedia is another in the series of carefully selected reprints from the world-renowned Kirk Othmer Encyclopa
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In the case of woven and knitted fabrics, the fibres and filaments are formed into intermediate continuous length structures known as yarns, which are then either interlaced by weaving or interloped by knitting into planar flexible sheet like structures known as fabrics. Nonwoven fabrics are formed directly from fibres and filaments by chemically or physically bonding or interlocking fibres that have been arranged in a planar configuration (see Nonwoven textile fabrics, Tire cords). Textile fibres may be classified into two main categories and into a number of subcategories, as indicated in Table-1. The generic names of man-made fibres are defined and controlled by the Federal Trade commission (1). With the exception of glass and asbestos fibers and the speciality metallic and ceramic fibres, textile fibres are formed from organic polymers. Cellulose (gv) and proteins (gv) are the only important natural polymers in naturally occurring fibres (see Biopolymers). Table 1. Classification
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nting members throughout the world. It is legally constituted by a Royal Charter, granted in Britain in 1925. The main central functions are the provision of an operational framework and the maintenance of quality, particularly in regard to professional qualifications and the spread of information to members and others. The term 'textile' as per this publication is defined as follows: A textile was originally a woven fabric, but the terms textile and the plural textiles are now also applied to fibres, filaments and yarns, natural and manufactured and most products for which these are a principal raw material. Note: This definition embraces, for example, fibre based products in the following categories, threads, cords, ropes and braids; woven, knitted and nonwoven fabrics, lace, nets and embroidery, hosiery, knitwear and made up apparel; household textiles, soft furnishings and upholstery; carpets and other floorcoverings; technical, industrial and engineering textiles including
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act of Encyclopaedia of Textile Fibres and nonwoven fabrics reproduced above, it is evident that textile fibres may be classified into two main categories i.e. naturally occurring fibres and manmade fibres as indicated in Table-1 of the extract. It can be seen that manmade fibres includes fibres which are based on polyvinyl chloride i.e. PVC. ii) Further, the Textile Terms and Definitions Tenth Edition published by the textile institute has an entire flow chart of classification of textile fibres given. From the flow chart, it is evident that textile fibres can be classified mainly into natural or manmade fibres. Further, manmade fibres include fibres made from synthetic polymer which further includes polyvinyl derivatives. Further, polyvinyl derivatives include chloro-fibre which are manufactured from PVC. Therefore, textile fibres includes fibres of PVC. iii) Further, the HSN explanatory note to Chapter Heading 5603 are reproduced below: A nonwoven is a sheet or web of predominately
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fibres). (1) SYNTHETIC FIBRES The basic material for the manufacture of these fibres are generally derived from coal or oil distillation products or from natural gas. The substances produced by polymerisation are either melted or dissolved in a suitable solvent and then extruded through spinnerets(jets) into air or into a suitable coagulating bath where they solidify in cooling or evaporation of the solvent, or they may be precipitated from their solution in the form of filaments. The main synthetic fibres are: (1) Acrylic: . (2) Modacrylic: .. (3) Polypropylene: .. (4) Nylon or other polyamides: . (5) Polyesters: . (6) Polyethylene: .. (7) Polyurethane: . Other synthetic fibres include: chlorofibre, fluorofibre, polycarbamide, trivinyl and vinylal. In the present case, PVC is produced by polymerization of vinyl chloride monomer (VCM) which is an organic monomer and thus will be known as 'synthetic fibres'. Also, PVC is manufactured by combining ethylene and chloride of which e
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5705 also need no discussion as to their applicability or otherwise. However, we would like to observe herein that we are not at all disagreeable to the point that there are man-made textiles but the same are not required to be referred to here in view of the impugned product being clearly classifiable under Chapter 39 as per discussions held herein above. Thus, once it has been accepted that the impugned goods are made up of manmade textile, it will get covered under section Xl of the tariff and thus will be excluded from the scope of chapter 39. Therefore, in view of the above, it is evident that the material is a textile material and thus excluded from the scope of 3918 and thus the classification suggested by the authority is not correct. v) The appellant further relies on the judgment in the case of Atlantic Spinning and Weaving Mills Ltd 1999 (111) ELT 121 (T) = 1999 (2) TMI 189 – CEGAT, NEW DELHI wherein the tribunal has discussed the meaning of synthetic textile material. The r
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ple fibres and filaments of organic polymers produced by manufacturing process by chemical transformation of natural organic polymers (for example, cellulose, casein, proteins or algae), such as viscose, rayon, cellulose acetate, cupro or alginates. Likewise artificial textile material will mean textile material of organic polymers produced by manufacturing process by chemical transformation of natural organic chemicals (for example cellulose, casein, proteins or algae), such as viscose, rayon, cellulose acetate, cupro or alginates. Non-cellulosic synthetic waste is classifiable under Tariff Heading 55. 03. Therefore, non-cellulosic synthetic waste can be considered as a synthetic textile material falling under the said Heading. The said Note 2(D) of Section XI makes a clear distinction between 'textile material l and Ifibres' when used in the context of terms 'manmade', 'artificial' and 'synthetic'. It can be seen from the above that the tribunal has he
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ght, of Hand loom, Cotton Rugs of handloom The relevant extract of customs tariff is as follows: Tariff Item Description of goods Unit (1) (2) (3) 5705 Other carpets and other textile floor coverings whether or not made up: m2 5705 00 Other carpets and other textile floor coverings whether or not made up: m2 ……Carpets 5705 00 11 …….. Of Silk m2 5705 00 19 ……Other m2 ……Durries: 5705 00 21 ……Durries Cotton m2 5705 00 22 …….Durries of man-made fibres m2 5705 00 23 …….Durries of wool m2 5705 00 24 ………. Cotton Durries of handloom (including Chindi Durries, Cotton Chenille Durries, Rag Rug Durrie, Printed Durrries, Druggets) m2 5705 00 29 ……….. Others Of Jute: m2 5705 00 31 …………Of blended Jute m2 5705 00 32 ………. Of coir jute m2 5705 00 39 ………..Other ……….Carpets, carpeting, rugs, mats and mattings: 5705 00 41 ……….knitted m2 5705 00 42 Mats and mattings
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discussed in facts of the case, the pile of PVC fibres is bonded to the liquid PVC layer on a conveyer belt which forms the substrate of the product. The PVC fibres are bonded to each other by way of adding liquid PVC coating which functions as an adhesive in this case. Thus, it can be seen that the present product clearly falls under the explanation given in the HSN explanatory notes and therefore will be covered under chapter heading 5705. Further, the Chapter note to chapter heading 57 reads as follows: For the purposes of this Chapter, the term 'carpets and other textile floor coverings means floor coverings in which textile materials serve as the exposed surface of the article when in use and includes articles having the characteristics of textile floor coverings but intended for use for other purposes.' It can be seen from the chapter note that Chapter 57 covers those carpets and floor coverings in which textile material serves as the exposed surface of the article. Thus,
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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 yarn forming the pile are then normally fixed by a coating of rubber or plastic. Usually before the coating is allowed to dry it is either covered by a secondary backing of loosely woven textile material, e.g., jute, or by foamed rubber. Chapter 5703 covers textile floor coverings but made with tufting technology. It is submitted that artificial turf imported by the sister concern is also made up of PVC fibres but is sewed on the backing fabric with the help of specialized multi-needle, the product is classifiable under chapter heading 5703. This shows that the products made by PVC fibres are being classified under chapter 5703 by the customs authority. However, in the case of product under dispute in the present case, there is no tufting carried out. In the present case, the PVC fibres are extruded and the pile is then bonded on to the backin
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observe that the Adjudicating Authority has given the following findings in the Adjudication Order: l have seen the sample. A perusal of samples, however, indicate that goods are nothing but tufted carpet/floor coverings covered under Custom Tariff Heading 57.03 as described in HSN explanatory notes i.e. these have textile yarn/strip inserted into a pre-existing backing, thus producing loops. The yarn/strips forming the pile are fixed with some coating of rubber/plastic or other adhesive and are covered by a secondary baking of loosely woven textile material of manmade fibres. The goods have the characteristic stiffness, thickness and strength rendering them suitable for use as floor coverings. The importer has not pointed out any distinctive characteristics, which take the goods out of the category of floor coverings and render them to be described as artificial turf. No specifications of the goods have been mentioned nor any catalogue has been submitted, even though the importer was
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order, trade enquiry from intended customers has been submitted. It is difficult to comprehend that goods if intended to be used for a specific technical use such as surface for a particular sport would be ordered for random quantities, at random prices without reference to any specifications. 6. We find that no material has been brought on record to controvert the above findings. Neither the Appellants have furnished the catalogue of the foreign supplier to indicate that the impugned goods is to be used for any sport nor any technical evidence to show that the impugned goods is not carpet/floorings. No doubt the onus is on the Revenue to determine the classification of any product, but the appellants can also not claim a particular classification in vacuum. They must have some basis for declaring a particular heading in which the imported product falls. No such basis, in our view, has been disclosed by the Appellants except mentioning that the Astra turf imported by Sidhartha Interna
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ecause they are strong and they resist moisture. The Appellants have not produced any material in support of their claim that the imported goods did not have a thread of textile exposed to the surface. Accordingly, we do not find any reason to interfere with the impugned order as far as classification of the product is concerned. We also agree with the Revenue at there was a mis-declaration in claiming classification under Heading 95.06 inasmuch as there was no material with the Appellant to declare the same heading. However, we find that the redemption fine and penalty imposed are on the higher side in absence of any material to show the margin of profit etc. We, therefore, reduce the redemption fine to Rupees One lakh and Penalty to Rupees Fifty thousand only. In the above judgment, the product was manufactured out of fibre of 100% UV olefin. Olefin is also a synthetic man-made fibre as will be evident from the encyclopaedia reproduced above. Thus, as per the above judgment artificia
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fibres require on the conveyor belt are treated with liquid PVC which acts as bonding material to bond the fibres amongst themselves as well as the substrate. The function of liquid PVC is only as an adhesive. Such use of adhesive will not make the product to be treated as impregnated, coated, covered or laminated with plastic. The appellant relies on the judgment in the case of F.G.P. LTD. 2002 (139) E.L.T. 581 (Tri. – Del.) = 2001 (4) TMI 637 – CEGAT, NEW DELHI wherein, in a similar manufacturing process to that in the present case, it has been held that applying bonding material to the non-woven will not render it a product which is impregnated, coated, covered or laminated. The relevant extract is as follows: 9. The process of manufacture, as given in the impugned order is as under : The raw materials (collectively known as batch materials) are mixed in certain required proportion to achieve the Glass composition needed to manufacture Glass woo/ Mats. These batch materials are fed
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serial No. 10 of the Notification No. 52/86 is very clear that once glass fabrics is treated either by impregnation or by coating or by covering or by lamination; it would not be eligible for exemption. The appellants, on the other hand, have contended that the Department has not appreciated the distinction between the 'bonding' end the term 'impregnation According to Fair Child's Dictionary of Textiles, Bonding is a process of adhering fibres or layers of fabrics together by a bonding agent whereas impregnated fabrics is a fabric in which the interstices between the yarn are completely filled with an impregnating compound throughout the thickness of the material, as distinguished from sized or coated materials where the material is applied to the surface and these interstices are not completely filled . The Id. Sr. Counsel has referred to a technical book Fibre Glass by J. Gilbert Mohr and William P. Rowe, published by Van Nostrand Reinhold Company, according to which
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#39;impregnation' in Paras 7 and 8 of the impugned order gave his findings that the distinction between the bonded fabrics and impregnated fabrics is that in case of impregnated fabrics the interstices are completely filled whereas this is not the case with bonded fabrics To find out the true character of fabric, it is necessary that the fabric has to be subjected to certain test as highlighted by the Bombay Textile Research Association in their report dated 20-12-1992 in which they stated that they have subjected the fabrics to examination under SEM (Scanning Electron Microscope) micrographs of longiindenal view (5218 and 5219) and cross sectional view (5230) of fibres. It gives cross sectional view of the fibres. In their report, they have stated that bonding material has not penetrated through the glass fibres, and it is only superficially spread on the surface of the fibre. The Revenue has not rebutted the findings reached by the Collector (Appeals) in the impugned order by pro
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the Revenue is thus, rejected. It is evident from the above judgment that the process of bonding using an adhesive does an that the product has been impregnated, coated, covered or laminated. Therefore, the contention of the authority to exclude the impugned product from chapter heading 5705 by way of note 1(h) is completely erroneous. 4) Without prejudice to the above if the product equally merits classification under 2 different chapter headings, as per the interpretative rules, the chapter occurring later will apply. It is an accepted fact that the impugned product is made up of PVC. PVC is classifiable under chapter 3904. If the argument of the authority is accepted, PVC will be covered under the definition of plastic as provided by chapter notes of HSN explanatory notes and thus floor covering of PVC are classifiable under chapter 3918. Further, as submitted above, the PVC fibres are a textile material as asserted by HSN explanatory notes as well as the authorities have themselve
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refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. Thus, applying the above rule, even if the argument of the authorities is upheld, the product will still be classified under chapter heading 5705 as it
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ents were not covered in the findings of the AAR so they have come before the Appellate authority with same grounds and arguments. They further submitted that they had no dispute about classification of PVC flooring under HSN 3918 but their product being different from PVC flooring should not be classified under HSN 3918. They argued that coir mat attracts GST @ 12%, similar sports material attracts GST @ 12% so their product should also attract GST @12% as the use is same. They explained in detail, through various definitions, that PVC fibres are textile materials which are excluded from Ch 39 by virtue of Note 2 to Chapter 39. They also produced some sample of PVC carpets being imported by their sister concern by classifying the same under HSN 5703 and produced copy of Bill of Entry in this respect. The Appellant claimed that their product is covered under CTH 57050090 as 'Others' under Customs Tariff. They reiterated the judgments cited by them in their written submission in
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any engaged in the manufacture of floor mats/ (floor coverings) made of (PVC textiles) PVC, known as PVC Carpet Mats or Floor coverings or textile floor coverings of PVC. They also advertise their product on their website as 'Mats' having sleek carpet like finish. On perusal of the sample produced before us by the Appellant, we observe that it is in the form of a plastic web on exposed surface and with a sheet-like backing of plastic. The manufacturing process, as submitted in writing by the appellant, reveals that the said product is manufactured in two stages. In Stage One, a web of PVC is formed in roll form. In Stage Two, this web is impregnated with a lamination of PVC. These facts are not disputed. There also no dispute that the product is made of 100% plastic. We now proceed to examine the classification of the product. 11. Let us look at the description of goods for the two competing entries in the relevant GST Rate Schedules issued vide Notification 1/2017-Central Tax
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of Handloom, Cotton Rugs of handloom Thus it can be seen that the appellant would have us classify the product under the entry 'other carpets and other textile floorings', i.e. other than those falling under headings 5701 to 5704; whereas the AAR has preferred the classification as 'floor coverings of plastics'. 12. In the absence of any definition for the terms in the tariff, let us look at the meaning of floor coverings' and 'carpets' as it is understood in common parlance. For instance, (i) The Encyclopaedia Britannica defines floor coverings and carpets1 as below: Floor covering material made from textiles, felts, resins, rubber, or other natural or man-made substances applied or fastened to, or laid upon, the level base surface of a room to provide comfort, durability, safety, and decoration. Such materials include both handmade and machine-made rugs and carpets and smooth-surfaced floor coverings. Although the words carpet and rug are frequently used i
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oor covering. Floor covering is a term to generically describe any finish material applied over a floor structure to provide a walking surface. Both terms are used interchangeably but floor covering refers more to loose-laid materials. Materials almost always classified as flooring include carpet, laminate, tile and vinyl. Carpeting Carpet is a soft floor covering made of bound carpet fibers or stapled fibers. Carpeting refers to wall-to-wall coverage, whereas a rug is simply used to cover a space. This type of flooring is typically used indoors and can be used in both high and low traffic areas A carpet is a textile floor covering typically consisting of an upper layer of pile attached to a backing. The pile was traditionally made from wool, but, since the 20th century, synthetic fibers such as polypropylene, nylon or polyester are often used, as these fibers are less expensive than wool. The pile usually consists of twisted tufts which are typically heat-treated to maintain their str
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d for descriptive classification of goods under GST. Further, in case of any doubt, and for the exact classification of any goods, reference needs inevitably to be made to the Section and Chapter Notes provided therein, as has been done in this case by both the appellants and the Maharashtra AAR. 13.2 In this context it is seen that Chapter 57 of the HSN falls under Section Xl of the Customs Tariff. Section Note 1(h) of Section Xl, relied upon by the AAR, excludes interalia non-wovens impregnated/coated with plastics. In their written submissions the appellant has claimed the said goods to be 'Non-woven' and impregnated/coated (as per their manufacturing process). Thus in view of Note 1(h) of Section Xl, the said goods are apparently excluded outright from this section. If the said goods are excluded from the section Xl, their classification under any Chapter under the Section would also be ruled out. 13.3 The Appellant, however, have placed their counter claim – that their goo
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textile was originally a woven fabric, but the terms textile and the plura/ textiles are now also applied to fibres, filaments and yarns, natural and manufactured and most products for which these are a principal raw material We also find that the definition of 'Textile' and 'Textile material' as available in The Fairchild Books Dictionary of Textiles is as under: Textile- Derived from the Latin term textilis, which is based on the verb texere, to weave. 1. A broad classification of materials that can be utilised in constructing fabrics, including textile fibres and yarns. 2. Designates the constructed fabric including woven, knitted and non-woven structures as well as lace and crochet goods.3. Descriptive of processes, organisations, personnel associated with the manufacture of products from fibres or yarns. Textile Material- An inclusive term for fibres, yarns, fabrics and products that retain relatively the same tensile strength, flexibility and properties of the or
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ed by the appellant nor the detail facts of the goods mentioned in the BE like test report etc. are presented before us to arrive at a conclusion that the goods imported under the said BE are similar to that of the goods in question, excepting the difference of process as claimed by the appellant. Therefore, the said Bill of Entry is of no help to the appellant. The Explanatory notes cited by the appellant for CTH 5703 clearly distinguish the product under import and the goods in question on the ground that under 5703, the backing of carpet is of fabric either woven or non woven and textile yarn is inserted into it, thus producing loops. In the instant case, there is no fabric, woven or non woven and no textile yarn. There is one PVC web obtained by moulding process which is then impregnated with PVC which acts as its base. Therefore, even in absence of relevant details about the product covered under the cited Bill of Entry, the goods in question can not be claimed to be similar to th
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semi colon has divided the entry in two parts and they are covered under the first part i.e. 'Other carpets and other textile floor coverings.' They have cited two judgments of Tribunal in their support that use of semi colon between two entries makes the sentences separate and they have to be read disjunctively. We have observed in above paras that the goods in question are neither carpets nor textile floor coverings but are PVC floor coverings and thus the claim of importer for first part of entry does not hold ground. Thus, even if their argument on semi colon is accepted, the goods in question are not covered under the said entry no. 146 of Schedule II. 17. As regards two Tribunal judgments cited by the appellant for their argument that PVC fibres are classifiable as Textile material, we observe that classification of PVC fibres as textile material is not under dispute before us. The issue of dispute is the classification of material used in the exposed surface of the floor
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ifferent chapter headings equally. Instead, the said goods are specifically classifiable under 3918 as PVC floor coverings, and invoking Rule 3 is not necessary when classification can be decided under Rule 1 itself. 20. In view of the above discussion, we hold that the PVC Mats manufactured by the appellant, a sample of which was produced before us, are specifically covered under HSN 3918 as Floor Coverings of PVC in terms of Rule 1 of the Rules of Interpretation of Customs Tariff read with Note 1(h) to Section Xl and Note 1 to Chapter 57. Accordingly, we pass the following order: ORDER We do not find any reason to interfere with the order of Authority for Advance Ruling holding that the PVC floor Mat would fall in the Customs Tariff heading 3918 and applicable rate of GST would be 18%(9% each of CGST and SGST). However, this order is restricted to the types of PVC floor coverings/Mats being manufactured by the Appellant as per the manufacturing process submitted and whose sample was
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