Case Title | Girish Rathod |
Court | Gujarat AAAR |
Honorable Judges | Member J.P.Gupta & Member Seema Arora |
Citation | GUJ/GAAAR/APPEAL/2021/15 2021 (4) GSTPanacea 38 HC Gujarat |
Judgement Date | 08-April-2021 |
Council for Petitioner | Vijaybhai Thakkar Girish Rathod |
Council for Respondent | NA |
Section | First Schedule to the Customs Tariff Act, 1975 |
In Favour of | In Favour of Revenue |
The Gujarat Bench of Member J.P.Gupta & Member Seema Arora has held that the GAAR has rightly relied on the aforementioned judgements as they support there contention and endorse the view that fusible interlining fabrics of cotton are classifiable under Heading 5903 of the First Schedule of the Customs Tariff Act, 1975
Facts of the Case
The Advance Ruling was sought for by the appellant for appropriate classification of their fabric ‘fusible interlining fabrics of cotton’.
GAAR vide Advance Ruling No. GUJ/GAAR/R/86/2020 dated 17.09.2020 ruled that the said fabric is classifiable under Heading ‘5903’ of the Customs Tariff Act, 1975(51 of 1975).
The appellant has challenged the aforementioned order of the Advance Ruling authority. Therefore, the issue involved in this case is the proper classification of the product/fabric ‘fusible interlining fabrics of cotton’.
The appellant in their submission have contended that
GAAR have not considered the general rules of interpretation of the First Schedule to the Customs Tariff Act, 1975, section and chapter notes and general explanatory notes of the First Schedule; that Rule 1 of the General rules for the interpretation for classification of goods in the schedule provides that ‘The titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter notes
GAAR has classified their product ‘Fusible Interlining Fabrics of Cotton’ under Chapter heading No.5903 by mis-reading the Chapter Note.No.2(a) of the said heading
Chapter note 2(a) of Chapter 59 excludes fabrics having characteristics from Sr.No.1 to 5 of the note from heading 5903 and that by referring to Explanatory notes to HSN, the GAAR has negated the content of Chapter note 2(a)
Comparison of Chapter Note 2(a), Sr.No.1 to 5 with the test result of their product (obtained from ATIRA) clearly suggests that the product is excluded from the chapter heading 5903, but GAAR has extrapolated the issue and has referred to the Explanatory notes of HSN for guidance
the appellant have referred to para-5 of Circular No.254/88/ 96-CX dated 18.10.1996 of the Board which specifically states that Chapter Note will prevail over the HSN explanatory notes. They have also referred to the case of CCE & Cus., Aurangabad vs. Ratan Tarpaulin Water Proof Indus reported as 2000 (126) ELT.782 (Tribunal) to support their contention.
the conclusion drawn by the GAAR based on Explanatory note to Chapter 59 instead of considering Chapter Note 2 of Chapter 59 meant for classification under Heading 5903 is erroneous and legally not correct and is contrary to Rule 1 of General Rules for Interpretation of the Customs Tariff Act, 1975
Court Held
Considering the facts as recorded, held that the GAAR has rightly relied on the aforementioned judgements as they support our contention and endorse the view that fusible interlining fabrics of cotton are classifiable under Heading 5903 of the First Schedule of the Customs Tariff Act, 1975
In view of foregoing, bench confirm the Advance Ruling No. GUJ/GAAR/R/86/2020 dated 17.09.2020 to the extent it has been appealed before us and hold that – The product ‘Fusible Interlining Fabrics of Cotton’ of the appellant is correctly classifiable under Heading 5903 of Chapter 59 of the First Schedule to the Customs Tariff Act, 1975.
The appeal filed by M/s.Girish Rathod(Jay Ambey),Opp. Shri Govind Processors, 183-1, Bhagirath Process, Shahwadi, Ranipur, Narol, Ahmedabad-382405, is rejected.
Analysis of the Judgement
Bench,find that the GAAR has rightly relied on the aforementioned judgements as they support our contention and endorse the view that fusible interlining fabrics of cotton are classifiable under Heading 5903 of the First Schedule of the Customs Tariff Act, 1975. 18.
Having decided the classification of the product ‘Fusible interlining fabrics of cotton’ of the appellant, bench would also like to rely on the following decisions/judgements which support our view.
The same are mentioned hereunder:
(1) Order No. 33/WBAAR/2019-20 dated 11.11.2019 issued by the West Bengal Advance Ruling Authority in respect of M/s. Sadguru Seva Paridhan Pvt Ltd. wherein it was held that fusible interlining fabric of cotton is classifiable under Heading 5903 in Chapter 59 of the First Schedule to the Customs Tariff Act, 1975.
(2) Order No.11/2019-20 dated 12.03.2020 issued by the Uttarakhand State Advance Ruling Authority in respect of M/s. The Ruby Mills ltd. wherein it was held that fusible interlining fabric of cotton is classifiable under Heading 5903 of the GST Tariff Act, 2017.
(3) Order dated 19.03.2020 of the Appellate Authority for Advance Ruling, West Bengal in the case of Appeal Case No. 15/WBAAAR/APPEAL/2019 filed by M/s. Sadguru Seva Paridhan pvt.ltd. wherein the Order No. 33/WBAAR/2019-20 dated 11.11.2019 issued by the West Bengal Advance Ruling Authority was upheld
Download PDF:
Girish Rathod
For Reference Visit :
Gujarat High Court