2018 (9) TMI 1343 – AUTHORITY FOR ADVANCE RULING GOODS AND SERVICE TAX, WEST BENGAL – 2018 (17) G. S. T. L. 144 (A. A. R. – GST) – Classification of goods – Polypropylene Leno Bags (or mesh bags) – Applicant is of the opinion that the PP Leno Bags manufactured is classifiable under Tariff Head 63053300 of the GST Tariff which is aligned to the First Schedule of the Customs Tariff Act, 1975.
–
Held that:- From the explanatory notes and clarification provided for determination of classification of goods it is seen that two main factors, apart from the raw materials, are to be considered, namely, the width of the tape used in the weaving and whether or not there is a layer/lining in these bags. The specifications of the PP Leno Bags being manufactured by the Applicant, therefore, become an important feature for determining their classification for the purpose of GST – IS 16187:2014 issued by the Bureau of Indian Standards specifies that, PP Leno Woven sacks for packaging and storage
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
red to as the the GST Act ). Advance Ruling is admissible under Section 97(2)(a) of the GST Act. The Applicant submits that the question raised in the Application has neither been decided by nor is pending before any authority under any provisions of the GST Act. The officer concerned raises no objection to the admission of the Application. The Application is, therefore, admitted. 2. The Application states that the Applicant manufactures Polypropylene Leno Bags which are mainly used for packing of agricultural produce such as, potato and onion. The Applicant also manufactures other woven PP/HDPE bags, FIBC bags which may be used for packing of cement, fertiliser and food grain. Ruling is, however, sought for the Polypropylene Leno Bags. The composition of these Polypropylene Leno Bags is i) Polypropylene (hereinafter referred to as PP ) – 88%, ii) Calcium-10% and iii) Colour Master Batch – 2%. The raw materials, namely, PP, calcium and Colour Master Batch, along with Additives, are fed
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tics, namely, sacks and bags (including cones) made of plastics other than polymers of ethylene but not of poly (vinyl chloride). Tariff Sub Heading 63053300 under the GST Tariff covers sacks and bags, of a kind used for packing of goods, made, not of jute or of other textile bust fibres of Heading 5303, but of manmade textile materials which are not flexible intermediate bulk containers but are of polyethylene or polypropylene strip or the like. The product PP Leno Bags, if described as only such, can be placed under either Tariff Code if merely these Tariff descriptions are referred to. 5. The Applicant submits that Note 2(p) of Chapter 39 of the GST Tariff (Plastics and articles thereof) does not cover goods of Section XI (textiles and textile products). There is no other criterion stated to exclude goods from being included as Plastics and articles thereof vis-a-vis Chapter 63. The Applicant also submits that, Note 1(g) to Section XI of the Tariff Act states that the Section of Tex
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
with plastics or articles thereof, of chapter 39. 7. The Application submits that the Applicant manufactures PP Leno Bags with tapes not exceeding 5mm and the same are not impregnated, coated, covered or laminated with particles and articles thereof, of Chapter 39. 8. From the explanatory notes and clarification provided for determination of classification of goods it is seen that two main factors, apart from the raw materials, are to be considered, namely, the width of the tape used in the weaving and whether or not there is a layer/lining in these bags. The specifications of the PP Leno Bags being manufactured by the Applicant, therefore, become an important feature for determining their classification for the purpose of GST. 9. IS 16187:2014 issued by the Bureau of Indian Standards specifies that, PP Leno Woven sacks for packaging and storage of fruits and vegetables should have range of width from 2.0 to 2.5 mm. Since, the Ruling sought for is specifically for PP Leno Bags used fo
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =