In Re: Assistant commissioner of Central Tax, Sankrail division (MEGA FLEX PLASTICS LTD.)
GST
2018 (11) TMI 663 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (19) G. S. T. L. 159 (App. A. A. R. – GST), [2019] 63 G S.T.R. 80 (AAR)
APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAAR
Dated:- 25-10-2018
Case No. 06\/WBAAAR\/Appeal\/2018
GST
RANDHIR KUMAR AND RAKESH KUMAR SHARMA MEMBER
\nPresent for the Appellant: Mr. Nishant Kumar, Assistant Commissioner of Central Tax, Sankrail Division, Howrah CGST & CX Commissionerate
\nPresent for the Respondent: Mr. Vinay Kumar Shraff, Advocate
\nThis Appeal has been filed by the Assistant Commissioner of Central Tax, Sankrail Division, Howrah CGST & CX Commissionerate (hereinafter referred to as “the Appellant”) on 08.08.2018 against Advance Ruling No. 09\/WBAAR\/2018-19 dated 06.07.2018 = 2018 (7) TMI 391 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL, pronounced by the West Bengal Authority for Advance Ruling in th<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n peal 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 the facts and circumstances of the case on the following grounds: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ne Leno bags\/ sacks containing 100 MT polypropylene granules” under ITCHS 39232990, the assessee decided to change the Tariff Heading for the same product, PP Leno Bags, to 6305 33 00 without citing any reasons for the same. The Appellant also submitted that the rule of estoppel by election is applicable in the matter as the Respondent themselves declared the item in question under Tariff Sub-Heading 3923 29 90 and enjoyed the duty draw back as per Duty Drawback Schedule of DGFT. The Appellant further submitted that the same product cannot be cleared for export and in DTA under two different Tariff Headings. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n uits and vegetables. The Standard IS 16187:2014 classifies such Sacks under the category of Textiles. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n [1993 (41) ECC 285; 1993; ECR 351 MP; [1990 (50) ELT 201 MP] = 1989 (9) TMI 120 – HIGH COURT OF MADHYA PRADESH AT INDORE, has rendered the following judgment: – = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: Assistant commissioner of Central Tax, Sankrail division (MEGA FLEX PLASTICS LTD.)GST2018 (11) TMI 663 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (19) G. S. T. L. 159 (App. A. A. R. – GST), [2019] 63 G S.T.R. 80 (AAR)APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAARDated:- 25-10-2018Case No. 06\/WBAAAR\/Appeal\/2018 … Continue reading “In Re: Assistant commissioner of Central Tax, Sankrail division (MEGA FLEX PLASTICS LTD.)”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14979","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14979"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14979\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\ni) The Respondent had themselves declared that they manufacture woven sacks of plastic materials of Chapter 39. The learned Advance Ruling Authority referred to Note 1(h) to Section XI of the Tariff Act which covers “textile and textile articles from Chapter 50 to 63 and does not include woven, knitted or crocheted fabrics of Chapter 39”, and hence the learned Advance Ruling Authority has erred in interpreting the true essence of this Chapter note;
\nii) When every word in the above Chapter note is separated by comma then each word should be given equal weightage and from that perspective the word 'woven' should have been considered as an exclusion word in its own right. Hence the Advance Ruling is n<\/p>\n
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\n6. During the course of the hearing, the Respondent submitted the following:
\n(i) Manufacturing process includes manufacturing of polypropylene strips (tapes) which is woven to produce man-made textile material which is commercially known as Leno Fabric;
\n(ii) In terms of Chapter Note 2(p) of Chapter 39 of the GST Tariff (Plastics and articles thereof) if textiles or textiles prod<\/p>\n
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\n(vi) The respondent has been granted capital subsidy by the government of India under The Technology Upgradation Fund Scheme (TUFS) for making the textile industry globally competitive and to reduce the capital cost for the textile industry-
\n(vii) The polypropylene leno bags for packing of agricultural produce is internationally classified under HSN code 63053300.
\n7. The Respondent submitted copies of the reports of test conducted by the Central Institute of Plastics Engineering & Technology, Haldia, dated 15.03.2018, the Indian Institute of Packaging, Kolkata, dated 27.03.2018 and Indian Oil Corporation Ltd., Panipat, dated 12.03.2018 on his samples of PP Woven Leno Bags. These test reports arc based on samples provided by the Respondent. It is also seen that in the reports of Central Institute of Plastics Engineering & Technology and the Indian Institute of Packaging i.e. Test Rep<\/p>\n
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\n“……the process of the manufacture of the HDPE tapes, the earlier judgments of the CEGAT approved by the Supreme Court and accepted by the Department, all clearly go to show that the HDPE bags are the bags woven by the plastic strips and they, therefore, are goods of plastic and the material used for weaving those bags being the strips of plastic made from plastic granules, the strips of plastic used for weaving the aforesaid HDPE woven sacks has to be classified 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.
\nIn the result we hold that HDPE strips or tapes fall under the Heading 39.20, sub-heading 3920.32 of the Central<\/p>\n
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