2018 (12) TMI 1090 – AUTHORITY FOR ADVANCE RULING, ODISHA – TMI – Classification of goods – P P Leno Bags – whether classified under Tariff code 63053300 or otherwise? – Held that:- In Chapter 39, in Tariff heading 3923, under sub-heading 39232990, PP sacks and bags are very well covered. There being a clear sub-heading in Chapter 39 assigned to PP Sacks and bags, the same can not be included in Chapter 63 and more specifically under subheading 63053300.
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Polypropylene Leno Bags, as stated by the applicant, are manufactured by weaving polypropylene strips (tapes), Linear Low Density Polyethylene (LLDPE) and Plastic Master Batch. Polypropylene is a wide variety of plastic. LLDPE is a plastic that is softer and more flexible and has lower tensile strength. These raw materials are made from Plastic Granules. The strips of plastic (polypropylene) are used for weaving ‘PP Leno Bags’ which are clearly classifiable under Tariff Item 39232990 of GST Tariff.
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PP Leno Bags are classi
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ANAND SATPATHY, AND SRI NILANJAN PAN, MEMBER Present for the Applicant: Shri Vinay Kumar Shraff, Advocate. Shri B. Maharana, Asst Manager (Com) of the Company Subject: GST Act, 2017-Advance Ruling U/s 980n Classification of Polypropylene Leno Bags 1.0 M/s. Utkal Polyweave Industries (P) Ltd., 26-Ganeswarpur Industrial Estate, Januganj, Balasore-756019, Odisha (hereinafter referred to as the Applicant ) assigned with GSTIN 21AAACU3799H1Z8 having registered address at 26-Ganeswarpur Industrial Estate, Januganj, Balasore-756019, Odisha have filed an application on 28.08.2018 under Section 97 of CGST Act, 2017 & OGST Act, 2017 read with Rule 104 of CGST Rules 2017 & OGST Rules, 2017 in Form GST ARA-01 seeking an Advance Ruling on Classification of P P Leno Bags . The applicant enclosed copies of challans as proof of payment of ₹ 5,000/for SGST bearing CIN No. SBlN18082100017988 dated 10.08.2018 and ₹ 5000/- for CGST bearing CIN No.SBIN17082100000562 dated 11.08 9017 to
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rs between the weft of filing strip. Leno fabric is then rolled and fabric rolls are cut into desired length which is converted to form a bag (sacks). 2.3 That chapter heading 6305 relates to Sacks and bags, of a kind used for packing of goods. Further sub heading 63053300 relates to Sacks and bags, of a kind used for packing of goods made from manmade textile materials of polyethylene or polypropylene strip or the 2.4 That Note 1(g) to Section XI of the Tariff Act states that the Section of Textile and Textile Articles covering Chapters 50 to 63 does not include, Monofilament of which any cross-sectional dimension exceeds 1 mm or strip or the like (for example, artificial straw) of an apparent width exceeding 5 mm, of plastics (chapter 39), or plaits or fabrics or other basket-ware or wickerwork of such monofilament or strip (chapter 46) 2.5 That Note 1 (h) to Section XI of the Tariff Act states that the Section of Textile and Textile Articles covering Chapters 50 to 63 does not inclu
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Advocate submitted additional written submission wherein he argued that wrong classification of the goods at one stage does not operate as estoppels/res judicata for subsequently claiming correct classification . In this regard, he placed reliance on the judgments of Hon ble Delhi Tribunal in the case of Commissioner of Central Excise, Bhopal Vs. Mahakoshal Potteries reported in 2005 (183) E.L.T.289 (Tri-Del) = 2005 (2) TMI 183 – CESTAT, NEW DELHI and Several Judgments of other Tribunals. 3.1 The Jurisdictional Officer of State GST & the jurisdictional Officer of Central GST appeared in person. The officer concerned of CGST informed that in the similar case, the West Bengal Authority for Advance Ruling Goods and Service Tax, 14, Beliaghata Road, Kolkata-700015 vide Order No. 09/WBAAR/2018-19 dated 06.07.2018 = 2018 (7) TMI 391 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL in the case of Mega Flex Plastics Ltd have ruled for P P Leno Bags to be classified under Tariff sub-heading 630
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d the Indian institute of packaging dated 02.08.2018 on their samples of P P Leno Bags. Further, the applicant also submitted a copy of IS 16187:2014 issued by the Bureau of Indian Standards, providing specifications for P P Leno Woven Sacks for packaging and storage of fruits and vegetables. 4.2 Notwithstanding the aforementioned certification by different certifying agencies, the issue for consideration by this forum is simply to determine the relevant HSN Code under which the goods manufactured by the applicant for supply is classifiable. This forum is not mandated to give any opinion on the standard or manufacturing process of the product manufactured by the applicant. In this regard, the goods manufactured by the applicant might be out of Woven PP Fabrics and might be conforming to the BIS standard, but the standard is not in question to be decided by this forum. In this case, the applicant is manufacturing PP Leno bags as per their declaration and as per their understanding it sh
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sified under any of the Chapters including Chapter 63 falling under Section XI. 4.4 In Chapter 39, in Tariff heading 3923, under sub-heading 39232990, PP sacks and bags are very well covered. There being a clear sub-heading in Chapter 39 assigned to PP Sacks and bags, the same can not be included in Chapter 63 and more specifically under subheading 63053300 4.5 The applicant has placed reliance on order no. 09/WBAAR/2018-19 dated 06.07.2018 = 2018 (7) TMI 391 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL of the West Bengal Authority for Advance Ruling, Goods and Service Tax in the case of M/s. Mega Flex Plastic limited, Howrah, wherein, the authority, classified P P Leno bags under Tariff sub heading 63053300. The aforesaid ruling of the West Bengal Authority of Advance Ruling has, in the meanwhile, been reversed by the West Bengal Appellate Authority of Advance Ruling in the Appeal Case No.06/WBAAAR/Appeal/2018 dated 08.08.2018 = 2018 (11) TMI 663 – APPELLATE AUTHORITY FOR ADVANCE RULI
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assified as an item under entry 39.20 of Chapter 39 and not under entry 54.06 of chapter 54. Accordingly, the entries of the finished goods have also to be made under the proper chapter of the Tariff Act treating them as the finished goods made of plastic strips. In the result we hold that HDPE strips or tapes fall under the Heading 39.20 subheading 3920.30 of the Central Excise Tariff Act and not under Heading 54.06, sub-heading 5406 90. Similarly the HDPE sacks fall into Heading 39.23, sub-heading 3923.90 4.7 Tariff heading 3923 includes goods that are classifiable as Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics . Polypropylene Leno Bags, as stated by the applicant, are manufactured by weaving polypropylene strips (tapes), Linear Low Density Polyethylene (LLDPE) and Plastic Master Batch. Polypropylene is a wide variety of plastic. LLDPE is a plastic that is softer and more flexible and has lower tensile strength. T
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w.e.f. 01.10.2017, polypropylene woven fabrics/bags/sacks, whether or not laminated, with or without C.V. stabilization, with or without liners/fasteners are specifically classified under drawback chapter 39 under Tariff Item 392302 The item under consideration being woven bags of polypropylene therefore merits classification under this Chapter as it stands today without any ambiguity. RULING In view of the foregoing discussions, we pass the following ruling The item Polypropylene Leno Bags (PP leno Bags) , be classified under GST Tariff Heading 3923 29 90 . The instant application stands disposed of accordingly. The applicant or the jurisdictional officer, if aggrieved by the ruling given above, may appeal to the Odisha State Appellate Authority for Advance Ruling under Section 100 of the OGST/CGST Act, 2017 within 30 days from the date of receipt of the Advance Ruling. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement – taxman
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