2018 (12) TMI 710 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – TMI – Classification of goods – HIDPE Woven Tarpaulin – whether classified under HSN 6306 of GST tariff? – Held that:- In view of the Note 1(h) to Section XI of the GST Tariff Act, the tarpaulins of IIDPE woven fabrics, laminated as per specification of IS 7903:2017, being expressly excluded, do not merit classification under Chapter 63.
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Ruling of the West Bengal Authority for Advance Ruling pronounced, 2018 (8) TMI 874 – AUTHORITY FOR ADVANCE RULINGS WEST BENGAL [2018 (8) TMI 874 – AUTHORITY FOR ADVANCE RULINGS WEST BENGAL], is upheld in its entirety.
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Appeal disposed off. – 07/WBAAAR/Appeal/2018 Dated:- 3-12-2018 – MR. RAKESH KUMAR SHARMA, AND MS. SMARAKI MAHAPATRA, MEMBER Present for the Appellant: Sri Pankaj Kumar Patwari, Advocate Present for the Respondent: Sri Santanu De, Assistant Commissioner of State Tax, Serampore Charge, Hooghly This Appeal has been filed by M/s. East Hooghly Polyplast Pv
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he First Schedule of the Customs Tariff Act, 1975 (hereinafter referred to as the Tariff Act ). 4. The Appellant has filed an Appeal against the above Advance Ruling requesting to set aside/modify the impugned Advance Ruling passed by the Authority for Advance Ruling OR pass any such further or other orders as may be deemed fit and proper in facts and circumstances of the case on the following grounds: (A) The Appellant has contradicted the AAR order on the ground that Tarpaulin made from EIDPE woven fabrics is covered under clause 1 (g) of Section XI of the Tariff Act, that is made up of monofilaments. According to Appellant's view, the Tarpaulin, as specified vide IS 7903:2017, is manufactured by the Appellant from mono-axially oriented HDPE tapes classifiable under Chapter of textiles by the Bureau of Indian Standards (BIS). (B) The Appellant differed from the observation of the AAR that they had not disclosed, at the time of hearing, the width of the tape, used for weaving. The
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ppellant also stated that in the instant case, Chapter 63 provided the most specific description to the products ill question. So, it is a settled law that if there are two competing entries under which a product may be classifiable, then the entry which covers the product more specifically should be preferred over the entry which is general in nature. 5. During the course of the hearing the Appellant reiterated the points as stated in their Grounds in Appeal. 6. The grounds taken in appeal by the Appellant are being considered sequentially in respect of relevant section Notes of the Tariff Act: i) The main contention of the Appellant for classification of Tarpaulin under Chapter 63 is that Tarpaulin made from IIDPE woven fabrics is covered under clause 1(g) of Section XI of the Tariff Act, that is made up of monofilaments and hence the final product, that is tarpaulins made from HDPE woven fabric did not fall under the definition of plastics provided in Chapter 39. ii) The Advance Rul
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ated with plastics or articles thereof, of Chapter 39. Tariff Head 6306 covers Tarpaulins, awnings and sun blinds; tents: sails for boats, sailboards or land craft; camping goods . iii) The Appellant submitted that: a) the final products of the company in question are tarpaulins made from HDPE woven fabric which are made out of synthetic fibres and are primarily used for Agricultural purposes as a harvesting material and for disaster management. b) the intermediate output HDPE tapes is obtained from granules conforming to IS 6192:1994 i.e., Textiles-monoaxially oriented high density polyethylene tapes which then passed through power looms wherein the HDPE tapes are sent for circular weaving and are converted into laminated HDPE fabrics as per specification contained in IS 6899 Textiles-high density polyethylene woven fabrics . c) the Appellant carries out the manufacture of tarpaulins made from HDPE through a process wherein weaving of the synthetic tapes are done followed by carrying
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nitted or crocheted fabrics, felt or nonwovens. impregnated, coated, covered or laminated with plastics or articles thereof, of Chapter 39. 8. During the course of hearing the Appellant also produced a sample of the tarpaulin in question which was made of HDPE woven fabrics and was laminated with LLDPE. Since water proofing is the principal characteristic of a tarpaulin it goes without saying that HDPE woven fabric can be used as tarpaulin only when such fabric is laminated. Thus the Appellant's contention that the issue was related to Tarpaulin, simpliciter, and not of laminated HDPE fabrics, is not the correct representation of facts. The process of lamination can neither be ignored nor treated in seclusion, as it is an integral and vital process for HDPE fabrics being put to use as tarpaulin. 9. Therefore, in view of the Note 1(h) to Section XI of the GST Tariff Act mentioned above, the tarpaulins of IIDPE woven fabrics, laminated as per specification of IS 7903:2017, being expr
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