product Non-woven Bags
Case Title | Girivarya Non Woven Fabric Pvt Ltd |
Court | Gujarat AAAR |
Honorable Judges | Member Milind Torawane & Member Seema Arora |
Citation | 2022 (7) GSTPanacea 378 HC Gujarat GUJ/GAAR/APPEAL/2022/13 |
Judgement Date | 12-July-2022 |
Council for Petitioner | Paresh Sheth |
Council for Respondent | NA |
Section | Section 100,103 |
In Favour of | In Favour of Respondent |
The Gujarat Bench of Member Milind Torawane & Member Seema Arora has held that the product in question viz. Polypropylene Non-woven bags merits classification under Chapter Heading 3923 of the HSN/Customs Tariff Act, 1975.
In view of the foregoing, bench reject the appeal filed by appellant uphold the Advance Ruling No. of the Gujarat Authority for Advance Ruling.
FACTS OF THE CASE
The appellant has raised the following questions for advance ruling in the application for Advance Ruling filed by it.
“1. Whether the product Non-woven Bags manufactured through the intermediate product, Non-Woven Fabrics classifiable under Heading No. 5603 are properly classifiable under Heading No.6305 or under Heading 3923?
- Whether the product Non-woven Bags would be eligible for exemption under Notification No.01/2017-CT (Rate) and 01/2017-IT(Rate) dated 28.06.2017, as amended?”
The Gujarat Authority for Advance Ruling (herein after referred to as ‘the GAAR’), vide Advance Ruling No. GUJ/GAAR/R/73/2020 dated 17.09.2020, inter-alia observed that in view of Madhya Pradesh High Court Judgment in case of M/s Raj Packwell Ltd. [1990 (50) ELT 201 (M.P.)], fiber manufactured from polypropylene granules cannot be considered as textile in view of Textiles Committee Act, 1963 and hence classification of polypropylene non-woven bags under Heading 6305 is not correct. Further, the ruling of WBAAAR relied upon by appellant is not applicable in terms of provisions of Section 103 of CGST Act. GAAR also observed that in view of CBIC (TRU) Circular No. 80/54/2018-GST dated 31.12.2018, polypropylene woven and non woven bags as classifiable under Chapter Heading 3923.
Aggrieved by the aforesaid advance ruling, the appellant has filed the present appeal
The appellant in its submission stated that, they are engaged in manufacturing of non-woven bags through the intermediate product non-woven fabrics manufactured from fiber grade polypropylene granules by adopting Spun Bond technology in which polypropylene granules are passed through extruder at certain temperature, the melted material is converted into single filament after passing through spinning unit. Then, these filaments are laid on continuous web under control pressure thermal bonding resulting in non-woven fabric and the said intermediate product “poly propylene non-woven fabrics” is classifiable under Chapter Heading 5603 and subsequently Poly Propylene Non-woven Bags is classifiable under Chapter Heading 6305 of Customs Tariff Act, 1975
product Non-woven Bags
COURT HELD
Considering the facts as recorded, held that from perusal of above findings of Supreme Court we find that it is very clear that the product in question in above case viz. dryer felts is made from cotton and wollen which is covered in the ambit of ‘textile’ and in present case Non-woven bags are made from polypropylene which is a type of plastic and on this ground alone it can be said that the above case law relied by appellant is not applicable in present case.
Therefore bench find that the product in question viz. Polypropylene Non-woven bags merits classification under Chapter Heading 3923 of the HSN/Customs Tariff Act, 1975.
In view of the foregoing, bench reject the appeal filed by appellant M/s Girivarya Non-Woven Fabrics Pvt. Ltd. and uphold the Advance Ruling No. GUJ/GAAR/R/73/2020 dated 17.09.2020 of the Gujarat Authority for Advance Ruling.
product Non-woven Bags
ANALYSIS OF THE JUDGEMENT
In the present case, Non-woven bags are made from polypropylene granules which are also a type of plastics made from polymerization of propylene. As mentioned in General Notes to Chapter Heading 39 of Custom Tariff Act, 1975, Plastics include materials which are capable of polymerization at some stage and therefore, in view of findings of Madhya Pradesh High Court, fabric made from polypropylene, by no stretch of imagination construed as textile but merits classification as plastic or article of plastic under Chapter Heading No. 3923.
Above findings of Supreme Court bench find that it is very clear that the product in question in above case viz. dryer felts is made from cotton and wollen which is covered in the ambit of ‘textile’ and in present case Non-woven bags are made from polypropylene which is a type of plastic and on this ground alone it can be said that the above case law relied by appellant is not applicable in present case.
Therefore bench find that the product in question viz. Polypropylene Non-woven bags merits classification under Chapter Heading 3923 of the HSN/Customs Tariff Act, 1975. 22.
In view of the foregoing, bench reject the appeal filed by appellant M/s Girivarya Non-Woven Fabrics Pvt. Ltd. and uphold the Advance Ruling No. GUJ/GAAR/R/73/2020 dated 17.09.2020 of the Gujarat Authority for Advance Ruling
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Girivarya Non Woven Fabric Pvt Ltd
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