GST
TRT-2025-
AAR Gujarat
Date:-12-07-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 12 June 2023
Key Pointers –
- The Applicant, Strata Geosystems India Pvt Ltd., proposes to manufacture and supply a new product under the category of 'Go technical textile' which they intent to sell under the brand name 'StrataTex llSR@'.
- As per the applicant, the said product is a fabric, manufactured by the process of wrap knitting of high grade polyester yam with special high tenacity & low creep property; that the said fabric is not subjected to processes like bleaching dyeing; coating, covering, impregnation or lamination. It would be manufactured in width exceeding 30 cms & length as per customers requirements in roll forms & would not be subjected to any further cutting after manufacture in the hands of the applicant.
- The applicant has currently declared the product under 6005 90 00 of CTA '75. ln the Union Budget for the FY 2022-23, amendments were made to the first schedule of the CETA, wef 1.5.2022, wherein tariff item 59ll 90 32 was inserted with the description 'Geotextile conforming to IS 16391. IS 16392'.
- Issue involved here is whether the above product is classifiable under Tariff ltem (TI) No. 60059000 or under Tl 59119032 of the Customs Tariff Act, 1975?
- The AAR observed that as per the HSN, chapter 60 covers knitted or crocheted fabrics in the piece (including tubular pieces) or simply cut to rectangular (including square) shape. Fabrics under chapter 60 include plain and ribbed fabrics, and double fabrics assembled by sewing or guming. Moreover, note 3 to chapter 60 of the HSN states that throughout the nomenclature any to 'knitted' goods includes a reference to stitch-bonded goods in which the chain stitches are formed of textile yarn.
- Conversely, chapter 59 covers 'lmpregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use'. Further heading 59.11, covers 'textile products & articles, for technical uses, specified in note 8 to this chapter'. Note 8 is already reproduced supra. Delving further description "knitted or woven Geo technical textile' and tariff items 591 I 90 31, 591 190 32,591I 9039 and 5911 9040 which have been introduced in the Customs Tariff wef 1.5.2022.
- In view of the foregoing, and especially on going through the manufacturing process, StrataTex HSR@ would be classifiable under Tariff Item (TI) No. 59119032 of the Customs Tariff Act, 1975 however subject to the condition that they have been granted BIS certification in terms of amendment in Customs Tariff Act, 1975 as per 3rd Schedule (Sr. No. a3(vi)) read with section 98 of Finance Act,2022.
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