CAAR: Classification of Polymer Sheet Goods Under 3921 Tariff Headings

In re Swift Decors (CAAR Delhi)

The case concerns an advance ruling application filed before the Customs Authority for Advance Rulings, New Delhi, seeking classification of imported goods such as PS mouldings, PVC panels, PU wall panels, vinyl sheets, and related products. The applicant proposed classification under Heading 3921 of the Customs Tariff Act, 1975, contending that the goods are plastic sheets or panels with cellular structure, used primarily for decorative purposes in interior spaces. The applicant argued that the products are uniformly shaped, may be surface-treated, and retain the essential character of plastic sheets even after cutting, thereby falling within the scope of Chapter Note 10 to Chapter 39. It was also submitted that the goods do not perform any structural or construction function and cannot be considered “builders’ ware” under Heading 3925. Reliance was placed on interpretative rules, judicial precedents, and earlier rulings supporting classification under Heading 3921.

The jurisdictional customs authority opposed this classification. Upon examining the manufacturing process, it was observed that the goods are produced through extrusion using specially designed dies that impart three-dimensional profiles, decorative contours, and interlocking edge systems. The panels undergo calibration, cutting, and finishing processes such as embossing and lamination, resulting in engineered architectural products rather than simple plastic sheets. It was noted that the goods are not flat sheets of regular geometric shape but profiled panels designed for installation.

The authority further emphasized the functional characteristics and intended use of the products. The panels are used as wall and ceiling cladding systems and provide benefits such as insulation, moisture resistance, durability, and protection, in addition to decorative appeal. They are designed for permanent installation and function as integrated architectural components within buildings. Based on these features, the goods were found to perform both functional and architectural roles, not merely decorative ones.

A key issue examined was the applicability of Chapter Note 10 to Chapter 39, which restricts classification under Headings 3920 and 3921 to plates or sheets that are unworked or only surface-worked and not further processed beyond cutting into rectangular shapes. The authority concluded that the subject goods, being profiled, engineered, and possessing interlocking systems and three-dimensional contours, undergo processing beyond the permissible scope of “sheets” under this note. Consequently, they were held to be excluded from classification under Headings 3920 and 3921.

The authority also analyzed Heading 3925, which covers “builders’ ware of plastics.” It was observed that this heading includes structural elements, wall and ceiling components, and ornamental architectural features forming part of buildings. The goods in question, being designed for permanent installation and forming part of interior architectural finishes, were found to align with this description. The presence of features such as fluted patterns, grooves, and interlocking systems reinforced their characterization as architectural panels.

Further, reliance was placed on Chapter Note 11 and Harmonized System Explanatory Notes, which clarify that Heading 3925 includes not only load-bearing elements but also ornamental architectural features used in buildings. The authority held that even if the goods are decorative, their role as integrated architectural elements supports classification under Heading 3925. The principle that classification must be based on the essential character, design, and use of the goods was applied.

The authority also noted that the applicant had previously classified similar goods under Heading 3925 and later sought reclassification without any change in product characteristics, suggesting that the change may be influenced by duty considerations. It was reiterated that classification must depend on the intrinsic nature and function of the goods, not on duty implications. Additionally, reliance on earlier rulings was not accepted as binding precedent in the present case.

Based on a comprehensive examination of manufacturing processes, structural characteristics, intended use, and relevant legal provisions, the authority concluded that the goods are not simple plastic sheets but engineered architectural panels. Accordingly, they were held to be classifiable under Heading 3925, specifically under sub-heading 392590 as “other builders’ ware of plastics,” and not under Heading 3921 as claimed by the applicant.

SEO-Friendly Titles with Descriptions

Plastic Wall Panels Classified as Builders’ Ware Due to Engineered Design and Installation Features
Description: The authority held that PVC and PS panels with interlocking systems and architectural profiles are not simple sheets but engineered building components. Classification was determined under Heading 3925 based on design, use, and installation characteristics.

Extruded Decorative Panels Treated as Architectural Components, Not Plastic Sheets
Description: Despite claims of decorative use, the panels were found to have functional and structural attributes due to extrusion-based profiling. The ruling emphasizes that manufacturing complexity and end-use determine classification.

Interlocking and Profiled Panels Excluded from Heading 3921 Due to Further Processing
Description: The authority ruled that panels with engineered edges and contours exceed the scope of “sheets” under Chapter Note 10. This led to their exclusion from Heading 3921 and classification under Heading 3925.

Permanent Installation and Functional Role Lead to Classification as Builders’ Ware
Description: Panels used for wall and ceiling cladding were treated as integral architectural elements. The decision highlights that permanence and functional utility influence tariff classification.

Decorative Panels Held as Ornamental Architectural Features Under Heading 3925
Description: The ruling clarified that decorative use does not exclude goods from being builders’ ware if they form part of building interiors. Such panels were classified as ornamental architectural components.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI

M/s Swill Decors, Jakhal Road, Sunam, Sangrur, Punjab – 148028 (herein referred to as “applicant”), having IEC No. AFJFS3668C submitted an application dated 04.02.2026 before the Customs Authority for Advance Rulings, New Delhi (CHAR, New Delhi in short) for obtaining Advance Ruling under Section 281-I of the Customs Act, 1962. The application was accordingly registered under Serial No. 193/2025-26 dated 04.02.2026.

Statement of relevant facts having a bearing on the questions raised in this Application

1.1 The applicant declares its intention to engage in the import and trade of ” PS MOULDING, PS WALL PANEL, PS L PROFILE, PS WALL PANEL SHEET, PVC PANEL FOAM, PVC SHEET UV, PVC PANEL, PVC VINYL SHEET, PVC PANEL WPC MOULD, PVC WALL PANEL, PU WALL PANEL” (hereinafter referred to as “the Products”) through our aforesaid company. The applicant has further stated that it is anticipated that the Products will be classified under Chapter heading 3921 of the Customs Tariff Act, 1985, as amended from time to time. For the purpose of trading or the aforementioned Product, the Applicant intends to import the same from multiple countries such as China.

1.2 The Applicant seeks an advance ruling on the classification and applicable duty rates for the imported products, in accordance with the provisions set forth in the Customs Act, 1962, and related regulations.

1.3 The Subject Goods constitute PS moulding/ wall panel/ L profile/wall panel sheets, PVC panel/ foam/sheet/uv panel/ vinyl sheet/panel wpc mould, wall panel, PU wall panel exhibiting cellular structure, produced primarily for decorative applications in interior spaces. These products manifest the following defining characteristics:

a) They are of uniform sizes and are either ready to use or not further worked upon

b) They are reinforced or combined with other materials that enhance their strength or functionality

c) They have a cellular structure making them lightweight and suitable for various decorative applications

d) When cut, these sheets remain ready to use in their original form as constitute PS moulding/ wall panel/ L panel sheets, PVC panel/ loam/sheet/1.1v panel/
vinyl sheet/panel wpc mould, wall panel, PU wall panel.

e) They are primarily used for interior decoration purposes such as wall coverings and ceiling decoration to enhance the aesthetic appeal of domestic or commercial spaces

f) They cannot, under any stretch of imagination, be classified as “builder’s ware” as they do not serve any structural or construction purpose but are merely decorative overlays

g) It is an established fact that these modern era decorative constitute PS moulding/ wall panel/ L profile/wall panel sheets, PVC panel/ foam/sheet/uv panel/ vinyl sheet/panel wpc mould, wall panel, PU wall panel with additional aesthetic advantage and being time savers have replaced usage of paints used conventionally.

1.4 It is pertinent to emphasize that the Subject Goods fundamentally differ from construction materials or “builder’s ware” with respect to their intrinsic purpose, application methodology, and essential characteristics. The Subject Goods do not constitute structural elements within buildings but rather function as decorative finishes applied to preexisting structural components.

LEGAL FRAMEWORK AND CLASSIFICATION ANALYSIS
A. Proper Classification under CTH 3921

1.5 The Customs Tariff heading 3921 encompasses “OTHER PLATES, SHEETS, FILM, FOIL AND STRIP, OF PLASTICS.” The Applicant submits that the Subject Goods are properly classifiable under the following specific subheadings:

a. 39211100- of polymers of styrene ( for PS wall panels/sheets)

b. 39211200 — Of polymers of vinyl chloride (for PVC Wall Panels/PVC Wall Panel Sheets)

c. 39219029 — Other (for specific types of reinforced panels)

d. 39211390 — Other (for PU Wall Panel)

1.6 This classification derives its legal foundation from Note 10 to Chapter 39, which explicitly defines the expression “plates, sheets, film, foil and strip” as applicable to:

“plates, sheets, film, foil and strip and to blocks of regular geometric shape, whether or not printed or otherwise surface worked (for example, polished, embossed, coloured, merely curved or corrugated), uncut or cut into rectangles (including squares) but not further worked (even if when so cut, they become articles ready for use).”

1.7 The Subject Goods conform precisely to this statutory definition, as they:

a. Constitute plates/sheets of regular geometric configuration;

b. May incorporate surface treatments such as printing, embossing, coloring, or corrugation;

c. Are presented either uncut or cut into rectangular/square formats without further processing;

1.8 Furthermore, heading 3921 explicitly encompasses plates, sheets, film, foil and strip of plastics that exhibit cellular structure or have undergone reinforcement, lamination, or combination with other materials. The explanatory notes to this heading unequivocally state:

“plates, sheets, film, foil and strip, of plastics… It therefore covers only cellular products or those which have been reinforced, laminated, supported or similarly combined with other materials.”

1.9 The Subject Goods matches with this description exactly, as they:

a. Have a cellular structure (making them lightweight and suitable for decorative applications)

b. Are reinforced or combined with other materials for enhanced aesthetic properties

c. Are marketed, sold, and used exclusively as decorative sheets/panels cf. Maintain their essential character as “sheets” even alter application.

d. Inapplicability of Classification Under CTI1 3925

1.10 The Applicant respectfully submits that classification of the Subject Goods under heading 3925 (“Builders’ ware of plastics, not elsewhere specified or included”) would constitute a fundamental misapplication of the Harmonized System nomenclature for the following determinative reasons:

1.11 Scope and Limitation of Heading 3925: Heading 3925 encompasses “Builders’ ware of plastics, not elsewhere specified or included.” An analysis of its subordinate subheadings reveals that this heading targets specific construction components possessing defined structural or functional roles:

a) 39251000: Reservoirs, tanks, vats and similar containers, of a capacity exceeding 300 liters

b) 39252000: Doors, windows and their frames and thresholds for doors

c) 39253000: Shutters, blinds (including Venetian blinds) and similar articles and parts thereof

d) 39259010: Of PVC-U (Unplasticized Poly Vinyl Chloride)

e) 39259090: Other

• These subheadings unambiguously establish that heading 3925 applies to discrete construction products fulfilling specific structural or functional roles within buildings, roles fundamentally distinct from the exclusively decorative function of the Subject Goods.
• The Subject Goods do not provide enclosure, support, storage, or any other building function but serve solely to enhance aesthetic appeal. The C13IC tariff has consistently classified decorative sheets under heading 392 I , recognizing their essential character as sheets rather than “builder’s ware.”

1.12 Application of General Rule for Interpretation (GRI) 3(a)

• General Rule Icy Interpretation 3(a) establishes that:

“The heading which provides the most specific description shall be preferred to headings providing a more general description.”

• In the instant case, heading 3921 provides the most specific description for the Subject Goods as “sheets of plastics, cellular or reinforced/combined with other materials,” whereas heading 3925 constitutes a residual classification limited to “builders’ ware not elsewhere specified or included.”

1.13 “Not Elsewhere Specified or Included” Limitation of Heading 3925

• The phrase “not elsewhere specified or included” in heading 3925 represents a statutory recognition that goods specifically covered under alternative headings cannot be classified under heading 3925. It is apparent from The Harmonized System Explanatory Notes that residual headings with the phrase “not elsewhere specified or included” have a lower classification priority than specific headings that precisely encompass the goods in question.
• Since the Subject Goods are specifically and comprehensively covered under heading 3921 as “sheets of plastics” with explicitly enumerated characteristics, they cannot be diverted to the residual heading 3925. The mere application of these decorative sheets to walls does not supersede their essential character as “sheets” specifically provided for under heading 3921.
• It represents a fundamental principle of customs classification that when a product receives specific description in a particular heading, it cannot be classified under a general heading, notwithstanding that the general heading might superficially appear to encompass the product by virtue of its broad terminology.

1.14 Refutation of “Structural Elements” Characterization

• Any reliance upon point 11(b) of the general explanatory notes to Chapter 39, which references “structural elements used, for example, in floors, walls or partitions, ceilings or roof,” would be fundamentally misplaced for the following reasons:

a) Contextual Interpretation Requirement: Point 11(b) must be interpreted within its proper context and in conjunction with Note 10 to Chapter 39, which specifically addresses classification of “plates, sheets, film, foil and strip.” The specific provisions of Note 10 cannot be superseded by general explanatory notes.

b) Absence of Structural Function: The term “structural elements” in point 11(b) designates components providing structural support or fulfilling construction functions. The Subject Goods manifestly provide no structural support and fulfill no construction function whatsoever, they function exclusively as decorative overlays applied to existing structures.

c) Essential Character Test: Pursuant to established customs classification principles, goods must be classified according to their essential character. The essential character of the Subject Goods remains that of decorative sheets/panels, not construction elements. Just as paint enhances aesthetic appeal of walls and ceilings without triggering classification as “builder’s ware,” the Subject Goods serve identical decorative purposes. If we accept the department’s logic that our “” PS MOULDING, PS WALL PANEL, PS L PROFILE, PS WALL PANEL SHEET, PVC PANEL FOAM, PVC SHEET UV, PVC PANEL, PVC VINYL SHEET, PVC PANEL WPC MOULD, PVC WALL PANEL, PU WALL PANEL “provide structural stability (which they do not), then paint should also be classified as “builder’s ware” – an interpretation that is clearly incorrect. Both paint and our decorative panels are applied to existing structures for purely aesthetic purposes.

d) Product Design and Limitations: The Subject Goods are specifically designed and marketed exclusively for decorative purposes. They lack requisite structural properties, thickness, and engineering specifications necessary for any construction or “builder’s ware” application.

• The Subject Goods cannot function as structural elements in the following applications:

a) Floors: The Subject Goods lack necessary durability, thickness, and load-bearing capacity required for flooring applications. They arc neither designed for, marketed for, nor utilized on floors,

b) Walls and Partitions: Classifying the subject goods wall or partition elements wrongly mixes up decorative wall coverings with actual structural wall parts. The Subject Goods are applied to preexisting walls exclusively for decorative purposes; they do not themselves create walls or partitions. Partitions cannot be constructed using the Subject Goods, as they merely constitute decorative overlays applied to structural elements already in place—functionally equivalent to paint or wall paper.

c) Ceilings and Roofs: The Subject Goods are too lightweight and lack requisite structural integrity to function as ceiling or roof elements. They may be applied to existing ceilings exclusively for decorative purposes, analogous to paint or wallpaper application.

• The mere fact that a sheet/panel can be affixed to walls does not automatically make it “builders’ ware” under 3925 it’ it maintains its essential character as a “sheet/panel” covered under 3921. 13y this logic, any decorative item placed on a wall (including posters, paintings, or fabric) would become “builder’s ware” – an interpretation that defies commercial reality and classification principles.
• The Subject Goods maintain their essential character as decorative sheets/panels even when applied to walls and do not transform into specific builders’ ware such as doors, windows, or other construction elements covered under heading :^,92^–.flicy cannot, tinder any reasonable interpretation, be characterized as structural elements providing stability or reinforcement to buildings.

JUDICIAL PRECEDENTS SUPPORTING CLASSIFICATION UNDER CTII 3921 1.15 The classification under CTI-1 3921 is supported by the following judicial precedents:

1.16 CT1-1 3921 has already been adopted by the department in the case of l3AK ITE I IY LAM LTD. Versus COMMISSIONER OF C. EX., HYDERABAD Order No. 1665/96, dated 3-10-1996 in Appeal No. E/2235/9 I and 2283/91-C where, the goods are classified under I-ISN 3925 and department was claiming it under FISN 392 I . In para 7 and 8 it was held as under :-

7. For proper understanding of the scope of the headings, we have to refer to the scope of various entries which answer to the same description by way of form under Chapter 39. It is seen that heading 39.18 covers floor and ceiling coverings and by virtue of Chapter Note 9 the scope of the coverage of the item is restricted to materials in running length of specified width. Heading 39.19 covers self-adhesive plates and sheets, films, foils etc. whether or not in rolls. The remaining varieties of plates, sheets, films, foils etc are covered under tariff heading 3920 and 3921. Heading 3920 covers the non-cellular varieties. Both the tariff entries 3920 and 3921 are covered by Chapter note 10 of Chapter 39. In our view going by the scheme of the tariff and chapter notes the scope of tariff entries 3920 and 3921 has to be read together and if that be done the goods manufactured by the appellants are squarely covered under tariff heading 3921. We are supported in this view by the scheme of the tariff in the HSN on which Central Excise tariff is based. The goods in question as per the HSN note fall under tariff heading 39.21 which corresponds to Central tariff entry 3921. The explanatory note under this heading in HSN read as under:

‘This heading covers plates, sheets, film, foil and strip, of plastics, other than those of heading 39.18, 39.19 or 39.20 or of Chapter 54. It therefore covers only cellular products or those which have been reinforced, laminated, supported or similarly combined with other materials. (For the classification of plates etc, combined with other materials, see the General Explanatory Note). ‘

According to Note 10 to this Chapter the expression “plates, sheets, foil and strip” applies only to plates, sheets, film, foil and strip and to blocks of regular geometric shape, whether or not printed or otherwise surface worked (for example, polished, embossed, coloured merely curved or corrugated), uncut or cut into rectangles (including squares) but not further worked (even if when so cut, they become articles _.for ready for use).

The Ld. Advocate in this context has urged that reliance could not be placed on the HSN notes for interpreting Central Excise tariff entries. We observe that Hon ‘ble Supreme Court in the case of Wood Craft Products Ltd. has held under para 18: We are of the view that the Tribunal as well as the High Court fell into the error of overlooking the fact that the structure of the Central Excise Tariff is based on the internationally accepted nomenclature found in the HSN and, therefore, any dispute relating to tariff classification must, as far as possible, be resolved with reference to the nomenclature indicated by the HSN unless there he an express different intention indicated by the Central Excise Tariff Act, 1985 itself. The definition of a term in the ISI Glossary, which has a different purpose, cannot in case of a conflict, override the clear indication of the, meaning of an identical expression in the same context in the HSN. In the HSN, block board is included within the meaning of the expression “similar laminated wood” in the same context of classification of block board. Since the Central Excise Tariff Act, 1985 is enacted on the basis and pattern of the HSN, the same expression used in the Act must, as far as practicable, be construed to have the meaning which is expressly given to it in the HSN when there is no indication in the Indian Tariff of a different intention. ‘

8. In view of the above we hold that the goods namely tiles in square and rectangular shape have been correctly held to be classifiable under tariff heading 3921. Since no pleas in respect of any other aspect have been adduced we upheld the orders of the ld. lower authority and dismiss the appeals.

1.17 In the light of above, it is requested that any attempt to classify PS/moulding, wall panel, L profile, wall panel sheets, PVC/panel foam, sheet uv, panel, vinyl sheet, panel wpc mould, wall panel, PU wall panel under a chapter heading other than 3921 would be contrary to the provisions of Rule 3(a) of the general Rules of Interpretation as well to the statutory context of heading 3921 as well as will draw a wrong precedent being matter already decided long tome back in the favour of the department.

1.18 In the case of COMMR. OF C. EX., New Delhi Versus CONNAUGHT PLAZA RESTAURANT (P) LTD, The Hon’ble Supreme Court has emphasized the principle that a specific entry shall prevail over a general entry. Following this principle, heading 3921 provides a more specific description of our goods than the general category of “builders’ ware” under 3925.

1.19 In similar matter, Ruling No. CAAR/Del/Shri Ganesh/71/2025 dated 07.10.2025 the Customs Authority for Advance Rulings has already examined the identical issue of classification of PVC Wall Panels, PS Sheets, PU Wall Panels, PVC Sheets (UV), etc., and has held that such decorative wall panels/sheets are classifiable under CTH 3921 and not under CTH 3925. The Authority, after detailed analysis of the product description, technical literature, Chapter Notes and Explanatory Notes, concluded that these goods are essentially decorative sheets/panels of plastics lacking the structural attributes required for coverage under Heading 3921.

1.20 Based upon comprehensive analysis of the Subject Goods’ physical characteristics, relevant legal provisions, explanatory notes, and established classification principles, the Applicant respectfully submits that proper classification of “PS MOULDING, PS WALL PANEL, PS L PROFILE, PS WALL PANEL SHEET, PVC PANEL FOAM, PVC SI-IErf UV, PVC PANEL, PVC VINYL SHEA’, PVC PANEL WPC MOULD, PVC WALL PANEL, PU WALL PANEL” falls under the appropriate subheadings of heading 3921 of the Customs Thrill’ Act.

1.21 Commercial understanding, industry practice, technical specifications, and established interpretative principles uniformly confirm the essential character of the Subject Goods as decorative sheets falling squarely within heading 3921. This classification maintains consistency with international customs practices and ensures regulatory harmonization in classification of such decorative products.

ISSUES REQUIRING ADVANCE RULING AND APPLICANT’S UNDERSTANDING

1.22 In the light of aforementioned, the Applicant seeks to enter the following questions for Advance Ruling and its interpretation of the question will be as under:-

i) Whether the classification of the goods mentioned in the table is correct.

S.No.	ITEM	CTH
I.	PS MOULDING	39211100
2.	PS WALL PANEI,	39211100
3.	PS BPROFILE,	39211100
4.	PS WALL PANEL SHEET	39211100
5.	PVC PANEL FOAM	39211200
6.	PVC SHEET UV	39211200
7.	PVC PANELL	39211200
8.	PVC’ VINYL, SHIEET	39211200
9.	PVC PANEL WPC MOULD	39211200
10.	PVC WALL PANEL	39211200
11.	PU WALL PANEL	39211390

2. Comments of Custom Port Commissionerate:

2.1 As per the provision of CAAR Regulation, 2021, the complete application of the applicant was provided to the concerned Custom Port, and requested to furnish the requisite comments in the instant matter. The port authority vide their letter dated 12.03.2026 furnished their comments, which are reproduced as under:

Please refer to your office letter File No. VIII/CAAR/Delhi/Swift (Ludhiana)/3²/₂025/230 dated 13.02.2025 on the subject cited above, whereby comments were called for on the advance ruling application filed by M/s Swift Decors before the Customs Authority for Advance Rulings (CAAR), New Delhi

2. Brief of the Application

2.1 M/s Swill Decors (hereinafter referred to as “the Applicant”) has tiled an application before the Customs Authority for Advance Rulings (CAAR), New Delhi, seeking an advance ruling on the classification of the goods proposed to be imported, namely “PVC Panels/ Sheets/ Mouldings, 31) Wall Panels, PU Wall Panels/ Panels/ Corners/Mouldings and WPC Panels” (hereinafter referred to as “the subject goods”)

2.2 The Applicant proposes to engage in the import and trade of the subject goods and has claimed that the same are classifiable under I-IS Code 39211100. falling under Chapter Heading 3921 of the First Schedule to the Customs Tariff Act, 1975. Accordingly, the Applicant has sought an advance ruling on the correct classification and applicable rate of duty in respect of the subject goods.

3. Submissions of the Applicant

3.1 In Annexure-I to the application, the Applicant has submitted that the subject goods are plastic products exhibiting a cellular structure and are manufactured primarily for decorative applications in interior spaces. The Applicant has, inter ilia, made the following claims:

a) The applicant submits that these products are plastic sheets/panels with cellular structure used primarily for interior decoration such as wall and ceiling coverings, providing aesthetic linish in residential and commercial spaces.

b) It is contended that the goods are uniformly shaped sheets/panels, sometimes reinforced or surface-treated (printed, embossed, laminated or coloured) and are ready to use for decorative applications.

c) The applicant argues that these goods do not perform any structural or construction function and therefore cannot be treated as building materials or structural elements of buildings.

d) According to the applicant, the products essentially retain the character of plastic plates/sheets even after cutting or surface treatment, which are specifically covered under Chapter Heading 3921 of the Customs Tariff Act, 1975 relating to “Other plates, sheets, film, foil and strip, of plastics.”

e) The applicant proposes classification under sub-headings 39211100, 39211200 and 39211390, depending upon the material composition of the panels (PS, PVC or PU).

f) It is further submitted that classification under Heading 3925 (Builders’ ware of plastics) would be incorrect because that heading covers specific construction articles such as doors, windows, shutters, reservoirs and structural building components, whereas the impugned goods are only decorative overlays applied on existing walls or ceilings.

g) The applicant also relies on General Rule for Interpretation (GM) 3(a) stating that a specific description (3921 – plastic sheets/panels) should prevail over a general residual entry (3925-builders’ ware).

h) Judicial precedents and earlier rulings in case of M/s Shri Ganesh, have also been cited to support classification under CTI1 3921, wherein decorative plastic sheets/panels have been held to be classifiable under the said heading.

3.2 On the basis of the above submissions, the Applicant has contended that the subject goods merit classification under CTH 3920 or 3921 as plastic sheets, plates or panels.

The photographs of some of the goods to be imported in Annexure A are placed as under: –

4. Examination of the Applicant’s Claims

4.1 The submissions made by the Applicant have been examined in detail with reference to: – the nature and characteristics of the subject goods, the manufacturing process and extent of working involved, the relevant Chapter Notes to Chapter 39; the I-ISN Explanatory Notes, and the intended use and manner of installation of the subject goods.

4.2 Upon such examination, it is observed that the claims advanced by the Applicant are not supported by the technical characteristics of the goods or the applicable statutory provisions, Igor the reasons elaborated below.

5. Nature of Manufacture and Extent of Working

5.1 Polyvinyl chloride (PVC), wood-plastic composite (WPC) and polystyrene (PS) panels are manufactured through an extrusion-based manufacturing process, wherein a compounded polymer mixture is healed and forced through specially designed extrusion dies to obtain panels with predetermined cross-sectional profiles.

5.2 The extrusion die is precision-engineered to impart the complete profile of the panel, including decorative surface contours, hollow cellular structures and the edge configurations required for installation. As the molten material passes through the die, it emerges in its final three-dimensional cross-sectional form, incorporating features such as fluted surfaces, grooves and edge profiles intended for interlocking installation.

5.3 Immediately after extrusion, the panels pass through a vacuum calibration and cooling system, which stabilizes the shape of the panel and ensures dimensional accuracy of delicate features such as grooves, flutings and interlocking edges. The calibrated panels are then cut to required lengths and may undergo additional finishing processes such as embossing, surface texturing, lamination or UV coating to enhance their decorative and architectural appearance.

5.4 As a result of this manufacturing process, the finished products are not flat plastic sheets or plates, but profiled architectural panels possessing three-dimensional contours and engineered edge systems designed for interlocking installation on walls and ceilings.

5.5 The panels therefore emerge from the manufacturing process as finished architectural cladding components intended for installation in building interiors, rather than as simple plastic sheets intended for further processing or general use.

5.6 In view of the above manufacturing process and the specialised design features incorporated during extrusion, the subject goods clearly possess the character of engineered building panels rather than plates or sheets of plastics contemplated under Headings 3920 or 3921.

6. Intended Use and Functional Characteristics

6.1 The subject goods are used as wall and ceiling cladding systems in residential, commercial and institutional buildings. In addition to decorative appeal, the panels provide:

• • surface protection:
  • insulation against heat and sound.
  • resistance to moisture and impact: and
  • durability and case of maintenance

6.2 Thus, the subject goods perform both functional and architectural roles and are not merely decorative overlays or temporary coverings.

7. Exclusion from Headings 3920 and 3921 Chapter Note 10

“10. In headings 3920 and 3921, the expression “plates, sheets, film foil and strip” applies only to plates, sheets, film, foil and strip (other than those of Chapter 54) and to blocks of regular geometric shape, whether Or not printed or otherwise surface-worked, uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use).”

Exclusion Paras under HSN of CTH 3920 may also be referred for exclusion of the subject goods for the classification under CTH 3920 as under-

“According to Note 10 to this Chapter, the expression “plates, sheets, film, foil and strip” applies only to plates, sheets, film, foil and strip and to blocks of regular geometric shape, whether or not printed or otherwise surface-worked for example, polished, embossed, colored, merely curved or corrugated), uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready fir use, for example, tablecloths).

Plates, sheets, etc., whether or not surface-worked (including squares and other rectangles cut therefrom), with ground edges, drilled, milled, hemmed, twisted, framed or otherwise worked or cut into shapes other than rectangular (including square) are generally classified as articles of headings 39.18. 39.19 or 39.2210 39.26.

Exclusion Paras under HSN of crui 3921 may also be referred for exclusion of the subject goods for the classification under C11-1 3921 as under

According to Note to this Chapter the expression “plates, sheets, film, fifil and strip applies only to plates, streets, film, foil and strip and to blocks of regular geometric shape, whether or not printed or otherwise slid ace-worked (finr example, polished, embossed, coloured, merely curved or corrugated), uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use).

Plates, sheets, etc., whether or not surface-worked (including squares and other rectangles cut therefrom), with ground edges, drilled, milled, hemmed, twisted, ,framed or otherwise worked or cut into shapes other than rectangular (including square) are generally classified as articles of headings 39.18, 39.19 or 39.22 to 39.26.”

7.1 Chapter Note 10 to Chapter 39 restricts the scope of Headings 3920 and 392 I to plates, sheets, film, foil and strip which are

• • unworked or merely surlace-worked:
  • uncut or cut only into rectangles or squares; and
  • not further worked, even if ready liar use.

72 The subject goods, however.

• • are profiled and shaped;
  • have engineered interlocking edges.
  • possess three-dimensional decorative contours.
  • are cut into non-rectangular forms, and
  • undergo extensive post-extrusion working beyond mere surffice treatment

7.3 Accordingly. by virtue of Chapter Note 10, the subject goods stand excluded from classification under Headings 3920 and 3921.

7.4 In terms of Rule I of the General Rules for Interpretation (GIR), classification shall be determined according to the terms of the headings and the relevant Section or Chapter Notes. Since Chapter Note 10 expressly restricts the scope of Headings 3920 and 3921 to plates or sheets which are not further worked beyond limited processes, and the subject goods are profiled and engineered panels designed for installation in buildings, the goods stand excluded from these headings. Accordingly, classification must be determined under the heading which specifically covers such building articles, namely Heading 3925.

8. Interlocking Edge Systems – Evidence of Engineered Profiling

8.1 The subject PVC/WPC/PS wall panels are manufactured through an extrusion process wherein molten polymer compound is forced through specially designed extrusion (lies. These dies are custom-engineered to impart the complete cross-sectional profile of the panel, including decorative contours, hollow cellular structures and the interlocking edge profiles.

8.2 In such extrusion-based manufacturing, the interlocking systems such as tongue-and-groove or click-lock joints are formed during the extrusion stage itself through the specific design of the extrusion die. As the molten material exits the die, the panel already possesses the final cross-sectional profile including the tongue on one edge and the corresponding groove on the other edge. The extruded panel is then passed through a vacuum calibration and cooling system, which stabilizes the profile and ensures dimensional accuracy of the interlocking joints.

Common interlocking systems include:

(a) Tongue-and-groove system: One edge of the panel is formed with a projecting tongue, while the opposite edge contains a corresponding groove. During installation, the tongue of one panel fits into the groove of the adjacent panel, forming a continuous and stable surface.

What is Tongue and Groove Joint?

(b) Click-lock system: In this system, precision-engineered edge profiles snap together mechanically, creating a firm and integrated joint without the need for additional fasteners.

Mechanism: The edge profiles are precision-engineered to engage and lock with a simple push, creating a secure mechanical fit Click-lock systems are very easy and fast to install providing a strong, integrated joint.

8.3 The existence of such engineered interlocking profiles is therefore an inherent design feature of the finished product rather than a simple surface treatment applied to plastic sheets. The panels are designed to interlock and form continuous wall or ceiling cladding systems.

8.4 Even though the interlocking features are formed during extrusion, the critical aspect for tariff classification is the nature and character of the finished product. The resulting panels are not flat sheets of regular geometric shape but are profiled architectural elements with specialised edge configurations intended for permanent installation in building interiors.

8.5 Accordingly, the presence of such engineered edge systems clearly demonstrates that the goods are finished architectural panels rather than simple plates or sheets of plastics contemplated under headings 3920 or 3921, thereby supporting classification under Heading 3925 as builders’ ware of plastics.

9. Applicability of Heading 3925-13uilders’ Ware of’ Plastics

9.1 The FISN Explanatory Notes to Heading 3925 clarify that the heading covers, inter alia:

structural elements used in floors. walls or partitions, ceilings or roofs; and ornamental architectural features. such as flutings.

9.2 The subject goods are designed for permanent installation on walls and ceilings and function as integrated architectural components. Their design, profile, method of installation and end-use clearly align with the description of structural elements under Heading 3925.

9A. Applicability of Chapter 39 Note [1(13) PVC Panels as Builders’ Ware structural elements used in Floors, walls or partitions, ceilings or roofs;

9A.1 Chapter 39 Note 11(B) provides that 1-leading 3925 covers builders’ ware of plastics, including articles used for the construction olbuildings, while excluding mere plates, sheets, film, foil and strip of Headings 3920 and 3921 unless such products are worked or constitute identifiable building articles. The subject PVC panels are not plain or generic plastic sheets; rather, they are extensively worked, profiled and engineered products designed specifically for use as wall and ceiling components in buildings.

9A.2 Applying the General Rules for Interpretation, particularly GI R I read with Chapter Note 11(B), the essential character of the subject goods is derived not merely from their plastic composition but from their design, rigidity, installation-specific features and exclusive end-use in construction. The panels are manufactured as finished building components and not as semi-finished plastic material intended for further processing

9A.3 In common trade parlance, the subject goods are bought and sold as “PVC wall panels” or “PVC ceiling panels and are marketed through building material and interior solution channels, accompanied by installation instructions. They are not traded or understood as plastic sheets or raw material. This commercial understanding further reinforces their identity as builders’ ware

9A.4 The subject PVC panels are intended for permanent installation and, once installed, form part of the interior fabric of the building. They are not ordinarily removable without damage and thus satisfy the test of permanency applicable to structural and architectural components of buildings. Such permanency of installation clearly distinguishes them from temporary or removable decorative sheers

9A.5 The HS Explanatory Notes to Heading 3925 include wall coverings, ceiling panels and ornamental architectural features PVC panels with profiled surfaces, flutings and textured finishes, when designed for permanent installation, squarely fall within this description. Therefore, in terms of Chapter 39 Note 11(B), HSN and established principles of classification, the subject PVC panels merit classification as builders’ ware of plastics under Heading 3925

9B. Ornamental Architectural Features – Chapter Note 11(h)

9B.1 Chapter Note 11(h) to Chapter 39 specifically clarifies that Heading 3925 includes “ornamental architectural features, for example, flutings, cupolas, dovecotes.” The legislative intent behind this provision is to cover decorative architectural elements made of plastics which are designed to form part of buildings and contribute to the architectural appearance of structures.

9B.2 The subject goods proposed to be imported by the Applicant include PVC panels, WPC panels, PS mouldings, PU wall panels and other profiled wall cladding panels, many of which exhibit embossed textures, fluted patterns, louvers, grooves and three-dimensional decorative contours. Such features are characteristic of architectural cladding materials intended to enhance the aesthetic appearance of walls and ceilings within buildings.

9B.3 In fact, the Applicant itself has admitted in the advance ruling application that the goods are primarily used for interior decoration such as wall coverings and ceiling decoration to enhance the aesthetic appeal of domestic or commercial spaces. This admission clearly establishes that the goods are designed and used as architectural decorative elements forming part of building interiors.

9B.4 Once it is accepted that the goods are decorative architectural panels installed on walls and ceilings, they squarely fall within the scope of “ornamental architectural features” contemplated under Chapter Note I1(h). The specific mention of flutings in the Chapter Note is particularly relevant because many of the panels illustrated in the Applicant’s annexures exhibit fluted or grooved surface patterns, which are classic examples of architectural ornamentation used in interior design.

9B.5 It is important to note that Heading 3925 is not confined only to load-bearing structural components of buildings. The HSN Explanatory Notes explicitly clarify that the heading also includes architectural and ornamental elements forming part of the structure or finish of buildings. Therefore, the absence of load-bearing functionality does not exclude the subject goods from classification under Heading 3925.

9B.6 The Applicant’s argument that the goods are “merely decorative overlays” therefore does not support classification under Heading 3921. On the contrary, if the goods are accepted to be decorative architectural elements applied to walls and ceilings, they fall more appropriately under Heading 3925 as ornamental architectural features forming part of building interiors.

9B.7 Thus, even if the Applicant’s contention regarding decorative use is accepted, such use strengthens rather than weakens the applicability of Heading 3925, because the heading specifically covers ornamental architectural features made of plastics used in buildings.

9B.8 In view of the above, the subject goods, being decorative architectural panels with fluted or embossed surfaces designed for permanent installation on walls and ceilings, are appropriately classifiable under Heading 3925 of the Customs Tariff Act, 1975, and cannot be regarded as simple plastic sheets under Heading 3921.

9C. Principle of Specific Heading Prevailing Over General Heading

9C.1 It is a well-established principle of tariff classification that where goods are covered by a heading describing their specific functional identity, classification under a more general heading is not appropriate. Heading 3921 is a general heading covering plates or sheets of plastics, whereas Heading 3925 specifically covers builders’ ware of plastics including architectural and ornamental elements forming part of buildings.

9C.2 Since the subject goods are designed and marketed as wall and ceiling cladding panels forming part of building interiors, the more specific heading 3925 is clearly applicable in preference to the general heading 3921, in accordance with the settled principles of tariff interpretation.

10. Correct Classification of Panels

10.1 From the foregoing analysis of the manufacturing process, structural characteristics and intended use of the subject goods, it is evident that the goods are not simple plastic sheets or plates but are engineered, profiled panels manufactured through extrusion dies specifically designed to produce three-dimensional architectural profiles and interlocking edge systems.

10.2 The panels emerge front the manufacturing process with fluted surfaces, decorative contours and interlocking joints, which enable them to function as integrated wall or ceiling cladding systems in buildings. Such characteristics clearly distinguish the subject goods from the flat plastic sheets contemplated under headings 3920 or 3021, which arc restricted by Chapter Note I 0 to plates or sheets of regular geometric shape that are not further worked beyond simple surface treatment.

10.3 In the present case, the subject goods possess engineered profiles, decorative architectural patterns and specialised edge configurations designed for installation on walls and ceilings, demonstrating that the goods are finished architectural panels rather than semi finished plastic sheets.

10.4 Furthermore, the Applicant itself has acknowledged that the products are primarily used for interior decoration and architectural enhancement of walls and ceilings. Such usage squarely falls within the scope of ornamental architectural features forming part of buildings, which are specifically covered under Chapter Note 11(h) to Chapter 39 and the EISN Explanatory Notes to Heading 3925.

10.5 Accordingly, both in terms of their structural characteristics as building cladding components and their ornamental architectural function, the subject goods merit classification under Heading 3925 (Builders’ ware or plastics) rather than under Heading 3921 as claimed by the Applicant.

11. Prior Classification Practice and Reliance on Earlier Rulings

11.1 It is observed that the Importers had previously imported similar goods declared as “PVC Wall Panels” and sell-classified the same under CTI-1 39259090, discharging applicable customs duties accordingly. The relevant Bills of Entry evidencing such earlier classification are enclosed in Annexure-A.

11.2 Subsequently, following the amendment of Notification No. 50/2017-Cus vide Notification No. 30/2024-Cus dated 23.07.2024, introducing concessional duty entries under certain tariff headings, the Importers have altered the claimed classification to CTH 3920/3921, despite there being no change in the design, manufacturing process, functional characteristics or end-use of the goods.

11.3 Such change in classification claim, without any corresponding change in the nature of the goods, indicates that the revised classification appears to have been influenced by duty considerations rather than the intrinsic characteristics of the products. It is a settled principle that classification under the Customs Tariff must be determined strictly on the basis of the nature, character and functional attributes of the goods, and cannot be altered solely on account of changes in the duty structure.

11.4 The Applicant has also relied upon the advance ruling issued in the case of M/s Shri Ganesh in support of classification under Heading 3921. In this regard, it is submitted that the Department has already filed an appeal against the said advance ruling before the appropriate appellate authority, and the matter is presently under judicial consideration.

11.5 Further, it is well settled that an advance ruling is binding only on the applicant in whose case the ruling is issued and the jurisdictional customs authorities in respect of that applicant, and does not constitute a binding precedent for classification of goods in other cases. Accordingly, reliance placed by the Applicant on the said ruling cannot be treated as determinative for the present matter.

12. Conclusion

12.1 In view of the detailed examination of the manufacturing process, structural characteristics and intended use of the subject goods, it is evident that the goods are not simple plates or sheets of plastics, but are engineered and profiled architectural panels manufactured through specialised extrusion processes incorporating decorative contours and interlocking edge systems designed for installation in building interiors.

12.2 The manufacturing process itself results in panels having three-dimensional profiles, fluted or textured surfaces and engineered edge configurations, which clearly demonstrates that the goods are finished architectural cladding components rather than flat plastic sheets of regular geometric shape contemplated under Headings 3920 or 3921. Accordingly, by virtue of the restrictive scope of Chapter Note 10 to Chapter 39, the subject goods stand excluded from classification under these headings.

12.3 Further, the subject goods are specifically designed for installation as wall and ceiling cladding systems forming part of the architectural finish of buildings and exhibit decorative surface features such as flutings, grooves and embossed textures intended to enhance the aesthetic appearance of interior spaces. In terms of Chapter Note 11(h) to Chapter 39, Heading 3925 expressly covers ornamental architectural features of plastics forming part of buildings, including decorative elements installed on walls or ceilings. The Applicant itself has admitted that the goods are used for enhancing the aesthetic appearance of interior spaces and therefore the products appropriately fall within the scope of ornamental architectural features under Heading 3925.

12.4 Accordingly, considering the nature of manufacture, extent of working, engineered installation features, architectural function and ornamental characteristics of the goods, the subject products possess the essential character of builders’ ware of plastics used as structural and architectural components of buildings.

12.5 In view of the foregoing analysis and the relevant provisions of the Customs Tariff Act, 1975, it is respectfully submitted that the subject goods are appropriately classifiable under Customs Tariff Heading 3925, specifically under sub-heading 392590 (Other builders’ ware of plastics), and do not merit classification under Headings 3920 or 3921 as claimed by the Applicant.

3. Personal Hearing:

3.1 Personal hearing in the matter was conducted through virtual mode on 20.03.2026. The authorized representative of the applicant attended the hearing and reiterated the facts already mentioned in the application. The authority directed the authorized representative of the applicant to file detailed reply addressing the port comments, especially with reference to para 11.4. The authorized representative of the applicant sought one week’s time to file the reply. No one attended the PH on behalf of the Department.

4. Additional Submissions:

The applicant vide email dated 07.04.2026 informed that they were not able to procure the copy of appeal filed by the department against advance ruling issued in the case of m/s Shri Ganesh on similar issue. Further, the applicant vide letter dated 16.04.2026 sent vide email dated 16.04.2026 submitted the Following:

PRELIMINARY SUBNIISSIONS ON LEGAL PRECEDENTS

Before addressing the department’s contentions paragraph-wise. it is imperative to highlight that our application extensively relies upon three critical legal precedents that remain entirely uncontested hy the department in their comments. The applicant had firstly relied on Bakelite I lyiam Ltd. Versus Commissioner of C. Lx., Hyderabad. In this matter, the Tribunal explicitly held that plastic tiles in square and rectangular shapes, even when possessing cellular structure and being reinforced or combined with other materials, are correctly classifiable under CITI 3921 and not under Cl]-! 3925. Secondly, the applicant had relied on RULING NO. CAAR/Del/Shri Ganesh/71/2025 dated 07.10.2025, this ruling involves identical goods. The Customs Authority for Advance Rulings, after detailed examination of product descriptions, technical literature, Chapter Notes, and Explanatory Notes, conclusively held that such decorative wall panels/sheets are classifiable under CTI-1 3921 and not under CTH 3925. The Authority specifically observed that these goods are essentially decorative sheets/panels of plastics lacking the structural attributes required for coverage under Heading 3925. The department has conspicuously failed to even acknowledge this recent ruling, let alone distinguish it or provide reasons why it should not be followed. Finally, the applicant had cited COMMISSIONER OF C. EX., NEW DELHI Versus CONNAUGHT PLAZA RESTAURANT (P) LTD (2012 (13) SCC 639). The Hon’ble Supreme Court has established the fundamental principle that a specific entry shall prevail over a general entry. In our case, CTH 3921 provides a specific description of “plates, sheets, film, foil and strip of plastics” with explicit reference to cellular products and those reinforced or combined with other materials. In contrast, CTEI 3925 is a residual classification limited to “builders’ ware not elsewhere specified or included.” Applying this principle, our goods merit classification under the specific heading 3921 rather than the general residual heading 3925.

The department has failed to address how their interpretation reconciles with the Bakelite 1-lylam precedent which explicitly classified similar cellular plastic products under CT1-1 3921 and why the recent CAAR ruling in Shri Ganesh case (involving identical products, same port, same classification dispute) should not be followed.

The department’s silence on these binding/persuasive precedents shows the fundamental weakness of their position. When legal authorities directly on point remain unrebutted, the department’s case stands demolished at the threshold itself.

Having established this foundational legal position, we now wish to proceed to address the department’s contentions paragraph-wise.

RESPONSE TO PARAS 2, 3 AND 4

The contents of Para 2 are a matter of record, being a brief summary of our application. Similarly, Paras 3.1, 3.2 and 3.3 merely reiterate the submissions already made in our application regarding the characteristics and nature of the subject goods. Para 4 is an introductory statement. These paragraphs do not contain any independent departmental contentions and hence require no specific reply. However, it is most respectfully submitted that the claims advanced by the applicant are duly supported with the technical characteristics of the goods as well as applicable judicial precedents and statutory provisions The actual contentions of the department commence from Para 5 onwards, to which detailed responses are provided below.

RESPONSE TO PARA 5 – NATURE OF MANUFACTURE AND EXTENT OF WORKING

The department has made elaborate assertions regarding the manufacturing process, claiming that PVC wall panels undergo “a series of operations including extrusion, formation of hollow or cellular core structures, edge profiling, milling and shaping to create interlocking joints, surface embossing, texturing, lamination, UV coating or decorative finishing” and that “post- extrusion processes further include precision cutting and joint refinement, resulting in non- rectangular, interlocking forms.” These assertions are fundamentally flawed and not based on any technical evidence or expert opinion specific to our products. The department appears to have relied on generic interne descriptions or assumptions rather than actual examination of our manufacturing process.

The factual position regarding the manufacturing of PVC wall panels is as follows:

(a) Manufacturing Process: PVC wall panels are manufactured through a continuous extrusion process wherein molten PVC compound is passed through specially designed dies. All features of the panel, including its profile, cellular structure, surface texturing, and any interlocking edges. are formed simultaneously during this single extrusion operation. The die is designed with the complete cross-sectional profile of the finished panel, and as the molten PVC passes through it, the panel emerges with all its features already formed.

(b) No Post-Extrusion Working: There is no post-extrusion milling, drilling, edge profiling, or shaping as assumed by the department. The chemical and physical properties of PVC do not permit such post-extrusion engineering work. Once the PVC has been extruded and cooled, it cannot be worked upon to add features like interlocking edges. Any attempt to mill or shape cured PVC would result in cracking, chipping, or deformation of the material.

(c) Interlocking Edges: Where certain panel varieties incorporate interlocking edges (such as tongue-and-groove profiles), these are not the result of “further working” but are integral to the original extrusion die design. The die itself is shaped to produce panels with these edge profiles in a single continuous operation. The interlocking serves purely aesthetic purpose(s) to create seamless visual continuity between adjacent panels and minimize visibility of small mounting screws, and provides no structural function whatsoever.

(d) Cutting Operations: The only operation performed after extrusion is of cutting the continuously extruded panel/sheets to standard lengths at the time of its installation keeping in view the dimensions where the fill panel or sheet cannot be used as such. This cutting is performed along straight lines and produces rectangular panels of specified dimensions. This is precisely the type of operation contemplated and permitted under Chapter Note 10, which refers to products “uncut or cut into rectangles (including squares).”

(e) Surface Features: Surface texturing, embossing, colors, and patterns are all part of the extrusion die design and are formed during the extrusion process itself. There is no separate post-extrusion surface treatment operation. UV coating, where applied, is a surface treatment akin to painting and does not alter the essential character of the product as a plastic sheet.

The department’s characterization of these products as “three-dimensional, profiled construction elements” is a gross exaggeration. The products remain essentially flat rectangular sheets with surface texturing for decorative appeal. The presence of surface patterns does not transform a sheet into a “construction element.” The department has provided no technical evidence, expert opinion, or manufacturer’s literature to support their elaborate description of the manufacturing process. Their assertions appear to be based on speculation and a fundamental misunderstanding of PVC extrusion technology.

RESPONSE TO PARA 6- INTENDED USE AND FUNCTIONAL

CHARACTERISTICS

The department has claimed that the subject goods “provide surface protection, insulation against heat and sound. resistance to moisture and impact. and durability and ease of maintenance” and therefore “perform both functional and architectural roles and are not merely decorative overlays or temporary coverings.”

This characterization fundamentally misunderstands the nature and purpose of our products. [very decorative wall covering material, whether paint. wallpaper, decorative laminates. or PVC panels. provides some incidental benefits such as case of cleaning. moisture resistance, or minor insulation. These are inherent properties of the material and do not transform a decorative product into a “construction element” or “builder’s ware.”

The factual position is as follows:

(a) Primary Purpose: The primary and predominant purpose of our products is purely aesthetic, to enhance the visual appeal of interior walls and ceilings. They serve as modern substitutes for conventional paint and wallpaper, offering consumers a wider range of decorative options with different textures, patterns, and finishes.

(b) Absence of Structural Function: The panels provide no structural support whatsoever to the walls or building. They do not bear any load, do not provide stability to the wall structure, and are not int1egrated into the building’s framework. They are applied as a decorative overlay on existing finished walls.

(c) Incidental Properties: The properties mentioned by the department, moisture resistance, ease of cleaning, minor thermal benefits, are incidental characteristics of PVC as a material, not the defining purpose of these products. By this logic, even paint should be classified as “builder’s ware” because it provides surface protection, moisture resistance, and ease of maintenance. This is clearly an incorrect approach to classification.

(d) Temporary Attachment: The panels are attached to walls through adhesive or small screws and can be removed without damaging the underlying wall structure. This is fundamentally different from construction materials like drywall, partition systems, or false ceiling grids, which are integrated into the building structure and cannot be removed without causing damage.

(e) Commercial Understanding: In trade and commerce, these products are sold and marketed as “decorative wall panels” or “wall coverings,” not as construction materials or builder’s ware. They are sold through interior decoration channels, not construction material suppliers. The packaging, marketing literature, and product descriptions all emphasize the decorative nature of the products.

The photographs attached in Annexure-A to our application clearly demonstrate that the products feature decorative patterns, textures, and designs (such as stone effects, wood grain effects, fluted patterns, 3D designs) that serve purely aesthetic purposes. These are not the characteristics of construction materials but of decorative wall coverings.

The department’s attempt to elevate incidental material properties into the “essential character” of the products is contrary to established principles of tariff classification and contradicts the commercial understanding of these products.

RESPONSE TO PARA 7 – EXCLUSION FROM HEADINGS 3920 AND 3921 BASED ON CHAPTER NOTE 10

The department has relied heavily on Chapter Note 10 to Chapter 39 to exclude our products from Headings 3920 and 3921. This reliance is fundamentally misplaced. Para 7 of the departmental comments reproduces Chapter Note 10 and the relevant HSN Explanatory Notes and concludes that our products are excluded because they are “profiled and shaped, have engineered interlocking edges, possess three-dimensional decorative contours, are cut into non- rectangular forms. and undergo extensive post-extrusion working beyond mere surface treatment.”

This conclusion is erroneous for reason that in headings 3920 and 3921, the expression ‘plates, sheets, film, foil and strip’ applies only to plates, sheets, film, foil and strip (other than those of Chapter 54) and to blocks of regular geometric shape, whether or not printed or otherwise surface-worked, uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use).”

The Note permits surface working (printing, embossing, coloring, texturing, polishing, corrugating); Cutting into rectangles or squares and Products that become “articles ready for use” after such cutting.

The Note excludes only products that have been “further worked” beyond surface treatment and rectangular cutting. Our Products fall squarely within the scope of Note 10 because the decorative patterns, textures, embossing, and colors on our panels constitute “surface working” which is explicitly permitted under Note 10. The Note specifically states “whether or not printed or otherwise surface-worked (for example, polished, embossed, colored, merely curved or corrugated).” Our products exhibit precisely these types of surface working.

Furthermore, our products are supplied in rectangular form. When installation requirements necessitate adjustment, the panels are simply cut along straight lines to produce smaller rectangles. There is no cutting into “non-rectangular forms” as claimed by the department. The panels become articles ready for use after cutting to size. which is precisely the situation contemplated by the parenthetical clause in Note 10.

The department’s claim that our products have undergone “further working” is not supported by any evidence. As explained in detail in our response to Para 5 above, all features of the panels, including any interlocking edges, are formed during the single extrusion process itself through the die design. There is no post-extrusion milling, drilling, edge shaping, or other working operations.

The interlocking edges, where present, are not the result of “further working” but are part of the original extrusion profile. The HSN Explanatory Notes to Heading 3921 explicitly recognize that products covered under this heading can be “reinforced, laminated, supported or similarly combined with other materials” indicating that products with enhanced or specialized features are still classifiable as sheets under 3921.

The department has quoted the FISN Explanatory Notes stating that plates and sheets “with ground edges, drilled, milled, hemmed, twisted, framed or otherwise worked or cut into shapes other than rectangular (including square) are generally classified as articles of headings 39.18, 39.19 or 39.22 to 39.26.”

Our products have none of these features. The presence of an interlocking edge profile that is part of the original extrusion does not constitute “milling” or “working” within the meaning of this exclusion. The Tribunal in Bakelite Hylam held that plastic tiles in square and rectangular shapes are classifiable under 1-leading 3921 even when they possess cellular structure and are reinforced. The department has not explained how our products, which are also cellular plastic sheets in rectangular form, should be treated differently.

The department’s interpretation of Note 10 is unduly restrictive and would result in virtually all cellular or textured plastic sheets being excluded from Headings 3920/3921, contrary to the clear scope of these headings and their Explanatory Notes.

RESPONSE TO PARA 8 – INTERLOCKING EDGE SYSTEMS AS EVIDENCE OF FURTHER WORKING

Para 8 of the departmental comments provides detailed descriptions and diagrams of tongue- and-groove and click-lock systems and concludes that “such engineered interlocking systems represent specialiied shaping and further working well beyond simple cutting or surface working.”

This conclusion is factually and legally incorrect. As explained in detail in our responses to Paras 5 and 7 above. interlocking edge profiles are not created through post-extrusion “shaping” or “working” but are integral to the extrusion die design. The die itselfhas the profile of the interlocking edge, and as molten PVC passes through it, the panel emerges with the interlocking feature already Conned.

This is not “post-extrusion working”, it is part of the original manufacturing process itself. It is pertinent to note at this juncture that Note 10 permits surface working during the manufacturing process and excludes only subsequent working operations performed after the basic sheet has been formed.

The department’s diagrams and technical descriptions (tongue-and-groove, click-lock mechanisms) do not support their conclusion. These diagrams show how adjacent panels connect during installation. They do not demonstrate any post-extrusion manufacturing operation. The fact that panels are designed to connect in a particular way during installation does not transform them from “sheets” into “construction elements.” The concept of “further working” in the context of Note 10 refers to operations that transform a sheet or plate into a distinctly different article with a different essential character. The presence of edge profile that facilitates installation does not constitute “further working” within this meaning. The product remains essentially a rectangular sheet before and after extrusion. Its essential character as a decorative wall covering sheet has not changed.

The department’s reliance on Para 8 to exclude our products from Headings 3920/3921 is therefore legally and factually unsustainable.

RESPONSE TO PARAS 9, 9A, 9B AND 10 – APPLICABILITY OF HEADING 3925

In the aforesaid paragraphs, the department has advanced three primary contentions; firstly, that the products are “structural elements used in walls or ceilings” covered under category (b) of the Explanatory Notes to Heading 3925; secondly, that the products fall within Chapter Note 11(B) as “builders’ ware” because they are “extensively worked, profiled and engineered products designed specifically for use as wall and ceiling components in buildings”; and thirdly, that the products constitute “ornamental architectural features” covered under category (h) of the Explanatory Notes and Chapter Note 11(h). Each of these contentions is fundamentally flawed and demonstrates a misunderstanding of both the nature of our products and the scope of Heading 3925.

I. HEADING 3925 – SCOPE AND LIMITATIONS

Heading 3925 is titled “Builders’ ware of plastics, not elsewhere specified or included.” The critical phrase is “not elsewhere specified or included.” This is a residual heading that applies only when the goods in question are not covered by any other, more specific heading within Chapter 39. The HSN Explanatory Notes to Heading 3925 begin with the statement “Heading 3925 applies only to the following articles, not being products covered by any of the earlier heading of sub-Chapter II” and this is followed by an exhaustive list of nine categories from (a) through (ij), namely: reservoirs, tanks and similar containers of capacity exceeding 300 liters; structural elements used in floors, walls or partitions, ceilings or roofs; gutters and fittings thereof; doors, windows and their frames and thresholds; balconies, balustrades, fencing, gates and similar barriers; shutters, blinds and similar articles; large-scale shelving for permanent installation; ornamental architectural features such as flutings, cupolas, dovecotes; and fittings and mountings for permanent installation such as knobs, handles, hooks, brackets, towel rails, switch-plates and protective plates.

The use of the phrase “applies only to the following articles” makes it clear that this is an exhaustive, closed list. Products must fall within one of these nine specific categories to be classified under Heading 3925. The department’s attempt to create a vague “other” category within an “Other builders’ ware” heading is legally impermissible. We demonstrate below that our products do not fall within any of the nine enumerated categories.

II. REFUTATION OF ALL NINE CATEGORIES

i. Reservoirs, tanks, vats and similar containers constitute the first category under CTH 3925. Our products are flat decorative sheets and panels. They are not containers of any description, have no capacity to hold liquids or materials, and bear no resemblance to reservoirs, tanks, or vats. This category is entirely inapplicable to decorative wall panels.

ii. The second category relates to structural elements used in floors, walls or partitions, ceilings or roofs. This is the category on which the department primarily relies, and it requires detailed examination. The phrase “structural elements” has a specific meaning in construction terminology. Structural elements are components that bear loads, provide stability, or form part of the load-bearing framework of a building. Our products possess none of these structural characteristics. The panels are lightweight cellular plastic sheets that cannot bear any significant load. They are not designed to support weight and would deform or break if subjected to structural loads. The panels are not integrated into the structural framework of the building but are applied as a decorative overlay on existing finished walls. The wall structure exists independently and functions identically whether these panels are present or absent. The panels can be removed without affecting the structural integrity of the wall or building in any way. This is fundamentally different from true structural elements like drywall, which forms the actual wall surface, or partition systems, which create the spatial divisions. Our products function identically to paint or wallpaper in that they are applied to existing finished walls to enhance aesthetic appeal. The fact that they are applied to walls does not make them “structural elements used in walls” any more than paint is a structural element. If the department’s interpretation were correct, then paint, which provides surface protection, moisture resistance, and is installed on walls, should also be classified as “builder’s ware.” In construction and architectural terminology, our products are universally understood as “wall coverings” or “decorative panels,” not as “structural elements.” The mere fact that a product is used on walls does not make it a “structural element used in walls.” The category contemplates products that are integral to the wall structure itself, not decorative overlays applied to finished walls.

iii. Gutters and fittings thereof constitute the third category. Our products are flat panels used for interior wall decoration and have no connection whatsoever to gutters or drainage systems. This category is entirely inapplicable.

iv. The fourth category covers doors, windows and their frames and thresholds for doors. Our products are not doors, windows, frames, or thresholds. They are not used for access, ventilation, or as part of openings in walls. This category is entirely inapplicable.

v. Balconies, balustrades, fencing, gates and similar barriers form the fifth category. These are protective or demarcating structures used for safety, privacy, or spatial definition. Our products serve none of these purposes as they are purely decorative wall coverings. This category is entirely inapplicable.

vi. The sixth category relates to shutters, blinds including Venetian blinds and similar articles and parts and fittings thereof. Shutters and blinds are moveable coverings for windows that provide light control, privacy, and security. Our products are fixed decorative panels for walls and have no functional similarity to shutters or blinds. This category is entirely inapplicable.

vii. Large-scale shelving for assembly and permanent installation in shops, workshops, and warehouses constitutes the seventh category. Shelving provides storage functionality through horizontal surfaces that hold objects. Our products are vertical decorative panels with no storage function. This category is entirely inapplicable.

viii. The eighth category covers ornamental architectural features. for example. flutings. cupolas. dovecotes. This category requires detailed examination as the department relies on it in Para 9B. The examples given in the Explanatory Notes are highly specialized architectural elements with specific structural and decorative functions. Flutings arc vertical grooves carved into columns Or pilasters. serving both structural purposes to strengthen columns and ornamental purposes in classical architecture. Cupolas are small, dome-like structures on roofs, often used for ventilation, light, or as bell towers. Dovecotes are specialized structures l’or housing pigeons or doves. These arc complex, three-dimensional architectural elements with specific functions and design requirements. They are not simple flat panels but are intricate structures that form distinctive architectural features of buildings. Our products are simple rectangular decorative panels with surface patterns such as stone textures, wood grain effects, or 3D designs. To illustrate the distinction, architectural features like those listed would be required for creating detailed miniature monuments such as a model of the Taj Mahal, with its complex domes, and ornamental flourishes. Our panels possess no such architectural complexity as they are merely rectangular shapes with decorative surface patterns applied to walls. Moreover, the availability of any drawings to prove the architectural characteristic of subject goods is imperative, which is absent in this case. The department has attempted to classify products with simple embossed or textured surfaces as “ornamental architectural features” comparable to flutings, cupolas, and dovecotes. This is a fundamental mischaracterization. If this interpretation were accepted, then any decorative item applied to walls, including embossed wallpaper, decorative tiles, or even textured paint, would become “ornamental architectural features” under this category. This cannot be the legislative intent. Moreover, the department itself acknowledges in Para 9B.2 that these products are used for “interior decoration purposes” and to “enhance the aesthetic appeal of domestic or commercial spaces,” which is precisely the function oldecorative wall coverings, not architectural features.

ix. The ninth category relates to fittings and mountings intended for permanent installation in or on doors, windows, staircases, walls or other parts of buildings. The examples given are hardware items such as knobs. handles, hooks, brackets, towel rails, switch-plates, and protective plates. These are small, functional items that facilitate the use of building components or provide mounting points for other objects. Our products are large-format decorative panels in length that cover wall surfaces. They are not fittings or mountings, provide no functional hardware purpose, and bear no resemblance to the items enumerated in this category.

In view of the above-made submissions, it is evident that our products do not fall within any of categories as enumerated in CTH 3925. The department has failed to identify any specific category that would encompass decorative wall panels and sheets.

III. INAPPLICABILITY OF CHAPTER NOTE 11(B)

In Para 9A, the department has invoked Chapter Note 11(B) which provides that Heading 3925 covers “builders’ ware of plastics.” The department argues that our products are “extensively worked, profiled and engineered products designed specifically for use as wall and ceiling components in buildings” and therefore fall within this note. This argument fails for multiple reasons.

Chapter Note II does not expand the scope of Heading 3925 beyond the nine categories enumerated in the Explanatory Notes. The phrase “builders’ ware” must be understood in light of the specific articles listed in categories. Products must fall within one of these specific categories to be considered “builders’ ware” under Heading 3925. As explained in detail in our responses to Paras 5, 7, and 8 above, our products are not “extensively worked” or “engineered” beyond the single extrusion process. All features are formed during extrusion itself. The department’s characterization is factually incorrect and not supported by any technical evidence or expert opinion.

The phrase “wall and ceiling components” in the construction context refers to structural or functional elements that form part of the wall or ceiling system. Our products are decorative finishes applied to completed walls, not components of the wall system itself. The department acknowledges in Para 9A.3 that “in common trade parlance, the subject goods are bought and sold as ‘PVC wall panels’ or ‘PVC ceiling panels’ and are marketed through building material and interior solution channels.” This actually supports our position rather than the department’s. The products are marketed as “decorative wall panels” or “interior decorative solutions,” not as “construction materials” or “builders’ ware.” The fact that they are sold through channels that also sell other interior products such as paints, wallpapers, floorings, and furnishings does not transform them into builders’ ware.

The department’s emphasis on “permanent installation” in Para 9A.4 is factually incorrect. As demonstrated through the photographs in our application, the panels are attached using adhesive or small screws and can be removed without damaging the underlying wall. This is fundamentally different from construction elements like drywall or partition systems, which are integrated into the building structure and cannot be removed without significant damage. The department’s test of “permanency” would classify even wallpaper as “builders’ ware” since wallpaper, once pasted, is not ordinarily removed without damage to itself. This demonstrates the flawed nature of the department’s reasoning.

Most critically, Chapter Note 11(B) applies to “builders’ ware not elsewhere specified or included.” Even if our products could be characterized as “builders’ ware,” which they cannot be for the reasons stated above, they are explicitly “elsewhere specified” under Heading 3921 as cellular plastic sheets. The Bakelite Hylam precedent and the recent CAAR ruling in Shri Ganesh involving identical products have conclusively held that such decorative panels are classifiable under Heading 3921. Products that are “elsewhere specified” cannot be diverted to Heading 3925 merely because they might also have some usage in the buildings where the civil work using Steel, cement, bricks has culminated responsible for structural stability.

Iv. INAPPLICABILITY OF CHAPTER NOTE 11(h)

In Para 9B, the department invokes Chapter Note 11(h), which includes “ornamental architectural features, for example, flutings, cupolas, dovecotes” within Heading 3925. The department argues that PVC panels with embossed designs, three-dimensional textures, flutings, and louvers constitute “ornamental architectural features.” This argument is factually and legally untenable.

The examples given in Note 11(h), namely flutings, cupolas, and dovecotes, are highly specific, specialized architectural elements. Flutings are vertical grooves in classical columns; cupolas are dome structures on roofs; dovecotes are housing structures for birds. These are all complex, three-dimensional architectural elements with specific design and functional characteristics. Our products are flat rectangular panels with surface patterns such as stone textures, wood grain effects, or geometric designs. These are simple embossed or printed patterns on flat surfaces, not complex architectural elements. The presence of surface texturing does not transform a flat sheet into an “ornamental architectural feature” comparable to flutings, cupolas, or dovecotes.

The department acknowledges in Para 9B.3 that we have stated in our application that “the subject goods are primarily used for interior decoration purposes, such as wall coverings and ceiling decoration, with the object of enhancing the aesthetic appeal of domestic or commercial spaces.” The department then argues that this admission “squarely aligns with the description of ‘ornamental architectural features’.” This is a fundamental misunderstanding of the distinction between interior decoration and architectural features. Interior decoration refers to aesthetic enhancement of interior spaces through finishes, furnishings, colors, and textures. It is about creating visual appeal within completed spaces. Architectural features, on the other hand, are structural or design elements that are integral to the architectural design and structure of the building itself, such as columns, arches, domes, cupolas, pediments, and similar elements which can be manufactured on the basis of a drawing made by architect to finally take a shape of domes or cuploas. Our products serve interior decoration purposes as decorative finishes applied to walls, not as architectural features that form part of the building’s architectural design.

1r the department’s interpretation were correct, then embossed or textured wallpaper would also be “ornamental architectural features” since it too has decorative patterns and is used to enhance aesthetic appeal of \\alls. This is clearly an incorrect interpictalion. The legislative intent in including “ornamental architectural features” in I leadim.; 3925 was to cover specialized architectural elements made of plastic, such as plastic replicas of classical architectural details including columns with fluting. decorative cornices, and pediments used in some make shill temporary building structures (not lit Ibr living due to fragile nature of PVC sheets/panels). It was not intended to cover simple decorative wall coverings.

RESPONSE TO PARA 11 – PRIOR CLASSIFICATION PRACTICE

The department has observed that we had earlier imported identical goods and self-classified them under CM 39259090, and that subsequent to the amendment of Notification No. 50/2017-Cus vide Notification No. 30/2024-Cus dated 23.07.2024, we have altered the claimed classification to CTI-I 3921. This observation is both factually incorrect and legally untenable for the following reasons:

(a) The earlier classification under CTI-I 39259090 was undertaken based on our understanding at that point in time, in light of the prevailing port practice and in the absence of detailed legal examination. At that time, we were aware that other importers at the same port were classifying similar products under cm 3925, and we followed this practice in good faith. Subsequently, we undertook a comprehensive examination of the relevant provisions, Chapter Notes, EISN Explanatory Notes, judicial precedents, and classification principles. Based on this detailed legal analysis, we have been advised that the correct classification of our products is under CTH 3921, not CT1-1 3925.

(b) It is trite law that an importer is not bound by previous classification adopted in earlier imports. Each assessment is independent, and past classification does not create any estoppel. It has repeatedly held that errors in past assessments do not bind either the revenue or the assessee in subsequent assessments.

(c) If the department’s logic were accepted. it would mean that once an importer has adopted a particular classification (even if incorrect), he can never seek correction, and must continue to pay higher duty in perpetuity. This proposition is legally and logically untenable.

(d) Most significantly, we have not unilaterally changed our classification in our import documents and created a fait accompli. Instead, we have chosen to approach the Customs Authority for Advance Rulings seeking a binding determination on the correct classification before making future imports.

(e) This shows our bonafide intent and desire to avoid any controversy or disputes with the department. If our intent were to evade duty, we would have simply changed the classification in our Bills of Entry and imported the goods. Instead, we have proactively sought advance ruling, which is the very purpose for which this mechanism has been created.

(f) The department’s suggestion that our approach is motivated by duty rate considerations is both factually incorrect and legally irrelevant. Classification must be determined based on the nature and characteristics of the goods and the applicable statutory provisions, not on the basis of duty rates.

In para 11.4, the department has contended that an appeal has been filed by them against the advance ruling of M/s Shri Ganesh International before the Hon’ble Punjab and Haryana High Court which is being relied upon by us in the present application. In this regard, it is most humbly submitted that till date no stay order has been passed by the Hon’ble High Court. In light of the same, filing of the appeal against a ruling being relied upon by the applicant in the present application has no bearing whatsoever.

RESPONSE TO PARA 12

Contents of paragraph number 12 are merely conclusion of the averments made by the department and hence need no reply.

5. Findings, Discussion & Conclusion:

5.1 Having examined the CAAR-1 application, the record of personal hearing, additional submission of the applicant and the applicable legal framework, I find the application to be valid in terms of the Customs Act, 1962 and the CAAR Regulations, 2021. I, therefore, allow the application and proceed to determine the classification of the proposed imports on the basis of the information on record.

Product description

5.2 The question before me in this case relates to the classification of the goods proposed to be imported, namely “PS Moulding, PS Wall Panel, PS L Profile, PS Wall Panel Sheet, PVC Panel Foam, PVC Sheet UV, PVC Panel, PVC Vinyl Sheet, PVC Panel WPC Mould, PVC Wall Panel and PU Wall Panel” as detailed in para 1.2 to 1.4 of this ruling.

Issue of classification

5.3 I note that the applicant seeks an advance ruling in respect of classification of a range of goods such as PS Moulding, PS Wall Panel, PS L Profile, PS Wall Panel Sheet, PVC Panel Foam, PVC Sheet UV, PVC Panel, PVC Vinyl Sheet, PVC Panel WPC Mould, PVC Wall Panel and PU Wall Panel. I observe that the goods, as per the applicant’s submission, are articles made of polymers of plastics, presented generally in sheet or panel form, and intended to be used for interior decoration. I note that the applicant has placed on record detailed specifications and claimed that the subject goods are marketed primarily as interior decorative materials rather than as structural components of a building. The material facts placed on record describes these goods as manufactured from polymers such as polyvinyl chloride, polystyrene and polyurethane, presented generally in the form of rectangular sheets or panels of standard sizes. While certain items are plain sheets with surface treatment such as embossing, printing or UV coating, others are moulded or provided with profiled, interlocking edges for installation on walls or ceilings. The intended use of all these products, as highlighted by the applicant, is for interior decorative purposes in residential and commercial buildings.

5.4 It is settled principle of law that the classification of any good under Customs Tariff Act, 1975 is governed by the General Rules for the Interpretation of the import Tariff. Further, Rule I of GRI stipulates that “classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes.” It is only when the headings and notes do not require otherwise then one may proceed to the subsequent rules.

5.5 Therefore, the starting point is an analysis of the terms of the competing headings, 3921 and 3925, read with the relevant Section/Chapter/Explanatory notes. For the purpose of determining the correct classification of the impugned goods, it is imperative to examine Tariff Headings 3921 and 3925 in the proper context and statutory framework. The said tariff headings under the First Schedule to the Customs Tariff Act, 1975, reads as under:

3921	OTHER PLATES, SHEETS, FILM, FOIL AND STRIP, OF PLASTICS
	Cellular:
3921 11 00	Of polymers of styrene
3921 12 00	Of polymers of vinyl chloride
3921 13	Of polyurethanes:
3921 13 10	Flexible
3921 13 90	Other
3921 14 00	Of regenerated cellulose
3921 19 00	Of other plastics
3921 90	Other:
3921 90 10	Thermocol
	Of polymers of vinyl chloride:
3921 90 21	Rigid, lacquered
3921 90 22	Flexible, lacquered
3921 90 23	Rigid, metallised
3921 90 24	Flexible, metallised
3921 90 25	Rigid, laminated
3921 90 26	Flexible, laminated
3921 90 29	Other
	Of regenerated cellulose:
3921 90 31	Rigid, lacquered
3921 90 32	Flexible, lacquered
3921 90 33	Rigid, metallised
3921 90 34	Flexible, metallised
3921 90 35	Rigid, laminated
3921 90 36	Flexible, laminated
3921 90 39	Other
	Other:
3921 90 91	Rigid, lacquered
3921 90 92	Flexible, lacquered
3921 90 93	Rigid, metallised
3921 90 94	Flexible, metallised
3921 90 95	Rigid, laminated
3921 90 96	Flexible, laminated
3921 90 99	Other

—

3925	BUILDERS’ WARE OF PLASTICS, NOT ELSEWHERE SPECIFIED OR INCLUDED
3925 10 00	Reservoirs, tanks, vats and similar containers, of a capacity exceeding 300 l
3925 20 00	Doors, windows and their frames and thresholds for doors
3925 30 00	Shutters, blinds (including venetian blinds) and similar articles and parts thereof
3925 90	Other:
3925 90 10	Of polyurethane
3925 90 90	Other

5.5.1 The relevant chapter note which explains the scope of these headings read as under:

The Chapter Note 10 of Chapter 39 provides that “in headings 39.20 and 39.21, the expression “plates, sheets, film, foil and strip” applies only to plates, sheets, film, foil and strip (other than those of Chapter 54) and to blocks of regular geometric shape, whether or not printed or otherwise surface-worked, uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use).”

5.5.2 The explanatory note to Tariff Heading 3921 are reproduced below:

“This heading covers plates, sheets, film, foil and strip, of plastics, other than those of heading 39.18, 39.19 or 39.20 or of Chapter 54. It therefore covers only cellular products or those which have been reinforced, laminated, supported or similarly combined with other materials. (For the classification of plates, etc. combined with other materials, see the General Explanatoiy Note.)

According to Note 10 to this Chapter, the expression “plates, sheets, film, foil and strip” applies only to plates, sheets, film, foil and strip and to blocks of regular geometric shape, whether or not printed or otherwise surface-worked (for example, polished, embossed, coloured, merely curved or corrugated), uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use).

Plates, sheets, etc., whether or not surface-worked (including squares and other rectangles cut therefrom), with ground edges, drilled, milled, hemmed, twisted, framed or otherwise worked or cut into shapes other than rectangular (including square) are generally classified as articles of headings 39.18, 39.19 or 39.22 to 39.26.”

5.5.3 The explanatory note to Tariff Heading 3925 are reproduced below:

3925 Builders’ ware of plastics, not elsewhere specified or included

3925.10 – Reservoirs, tanks, vats and similar containers, of a capacity exceeding 300 1

3925.20 – Doors, windows and their frames and thresholds for doors

3925.30 – Shutters, blinds (including Venetian blinds) and similar articles and parts thereof

3925.90 – Other

This heading applies only to the articles mentioned in Note 11 to this Chapter.

5.5.4 The chapter notes to Tariff Heading 3925 is reproduced below:-

(11) “Heading 3925 applies only to the following articles, not being products covered by any of the earlier heading of sub-Chapter IL

(a) Reservoirs, tanks (including septic tanks), vats and similar containers, of a capacity exceeding 3001;

(b) Structural elements used, for example, in floors, walls or partitions, ceilings or roofs:

(c) Gutters and fittings thereof.

(d) Doors, windows and their frames and thresholds Ibr doors;

(e) Balconies, balustrades, fencing, gales and similar barriers,.

(f) Shutters, blinds (including Venetian blinds) and similar articles and parts and filtings thereof

(g) Large-scale shelving for assembly and permanent installation, for example, in shops, workshops, warehouses;

(h) Ornamental architectural features, for example, flutings, cupolas, dovecotes; and

(ij) Fittings and mountings intended for permanent installation in or on doors, windows, staircases walls or other parts of builders, for example, knobs, handles hooks, brackets, towel rails, switch-plates and other protective plates.”

5.6 After due examination of Tariff heading and chapter notes, I note that the principal contention of the applicant is that the goods, notwithstanding certain surface finishing such as UV coating, printing or embossing, retain their essential character as plates or sheets of plastics of regular rectangular shape. The applicant has stressed that in terms of Chapter Note 10 to Chapter 39 such plates or sheets remain classifiable under heading 3921, even if, when so cut, they become articles ready for use. The applicant has therefore asserted that classification under heading 3925, which covers builders’ ware of plastics, is not appropriate for their products.

5.7 On the other hand. the jurisdictional Commissionerate, in their comments. has opposed classification under heading 3921 mainly on four grounds. The Commissionerate has highlighted that (i) certain product lines described in the application are provided with profiled or engineered interlocking edges which enable permanent installation in buildings. The panels. as three-dimensional decorative contours cut into non- rectangular Forms. with tongue-and-groove/click-lock system. profiles engineered For permanent installation as wall/ceiling coverings providing surface protection, insulation & moisture resistance, and durability (ii) The engineered interlocking system of PVC wall panels, which is integral to their function as wall coverings, represents a level of processing i.e. extrusion of molten PVC compound through specially designed dies. formation of hollow or cellular core structures, edge profiling, milling and shaping to create interlocking joints; surface embossing, texturing, lamination, UV coating or decorative finishing to achieve architectural aesthetics. Thus, the engineered interlocking system of PVC wall panels, formed through extrusion Followed by specialized shaping and further working beyond surface-working distinguishes them from basic rectangular cuts of a flat sheet, which appear to place them outside the scope of CTI-1 3921, (iii) the heading 3925 covers structural elements used in floor, walls or partitions, ceilings or roofs. PVC wall panels designed for permanent installation as structural/functional and decorative coverings, providing protection, insulation, and moisture resistance, appears to qualify as such structural elements in terms of Note I 1(b) of Chapter 39. The subject goods are designed for permanent installation on walls and ceilings and function as integrated architectural components. Their design, profile, method of installation and end-use clearly align with the description of structural elements under Heading 3925, (iv) Chapter Note 11(h) to Chapter 39 expressly provides that Heading 3925 includes “ornamental architectural features, for example, flutings, cupolas, dovecotes.” The said Chapter Note thus clarifies that the scope of Heading 3925 encompasses decorative architectural elements added to a building or structure with the objective of enhancing its aesthetic and architectural character. The specific reference to flutings as an illustrative example reinforces the legislative intent to cover profiled and ornamented architectural components, particularly those forming part of walls or ceilings. Accordingly, the department has suggested classification of subject goods under CT1-13925.

5.8 I have examined the submissions from both sides in light of Tariff entry and Chapter notes. Based on the information on record, I observe that there are in fact two categories of products listed in this application. The first category comprises plain PVC sheets, supplied in large rectangular form with or without surface printing undoubtedly having character as plastic sheets in terms of Chapter Note 10. The another category, which comprises mouldings, wall panels and goods with interlocking tongue-and-groove edges, designed to be fitted continuously to create a wall or ceiling surface. These products in view of the department exhibit characteristics of builders’ ware/structural elements/architectural features and their classification requires to be examined in further detail.

5.9 I have inferred that the Commissionerate concern relates particularly to the above second category. Their argument is that once a sheet is profiled in such a manner as to interlock and form part of the building structure, its essential character changes from a mere sheet to a constructional article.

5.10 However, on careful examination and after examining submission of the applicant in response to the Commissionerate’s comments, I find that (i) the department’s assertion regarding “permanent installation” is untenable and contradicts the actual method of application. These panels are not permanently installed but are temporarily attached to walls through adhesive or screwing methods. The installation is so temporary that panels can be removed without damage to the underlying wall structure. The temporary nature of attachment, combined with the ease of removal, clearly distinguishes these products from permanent construction elements and reinforces their character as decorative wall coverings, (ii) these panels fundamentally maintain their essential rectangular geometric shape throughout the manufacturing and installation process, with the geometric integrity preserved regardless of size variations required for specific applications. When installation demands necessitate dimensional adjustments, sheets are simply cut along straight lines to produce smaller rectangular panels that accommodate particular wall dimensions, without any alteration to their basic geometric character or structural properties. The cutting process involves no complex shaping or specialized working beyond standard dimensional reduction, ensuring that the essential rectangular nature remains unchanged, (iii) the interlocking edges incorporated into certain panel varieties serves purely aesthetic purposes to create seamless visual continuity between adjacent panels and minimize visibility of small mounting screws. The departmental understanding that PVC wall panels are engineered products is not based on correct understanding as all one piece of PVC wall panel, having features such as surface texturing/interlocking edges are extruded/formed simultaneously in a single manufacturing/extrusion process moulded through specially designed dies and cannot be worked upon to add features like interlocking edges because any attempt to mill or shape cured PVC would result in cracking, chipping or deformation of the material. In view of the above, I note that the profiled and engineered interlocking edges are not the result of “further working” but are integral to the original extrusion die design. This demonstrates as a qualifying criterion to classify PVC Wall Panel under HSN 3921, (iv) PVC panels lack the structural strength necessary for construction applications that would provide building stability or support. These products serve as substitutes for paint and wallpaper, designed exclusively for aesthetic enhancement rather than structural construction and are in the nature of decorative overlays applied to walls rather than structural components of walls themselves.

5.11 Further, I find that heading 3925 includes “Builders’ ware of plastics, not elsewhere specified or included.” As per Chapter Note (11) of this chapter, it “applies only” to the listed classes of articles such as reservoirs/tanks of capacity exceeding 300 L; structural elements used in floors, walls or partitions, ceilings or roofs; gutters and fittings; doors, windows and frames; balconies/balustrades/fencing/gates; shutters/blinds and parts; large-scale shelving for permanent installation; ornamental architectural features (e.g., flutings, cupolas, dovecotes); and fittings and mountings intended for permanent installation on parts of buildings (knobs, handles, hooks, brackets, towel rails, switch-plates and protective plates). Therefore, I note that the phrase “not elsewhere specified or included” textually subordinates heading 3925 to any more specific provision. I note that the Commissionerate relates the subject goods with structural elements used in in walls in reference to Chapter note 11(b), therefore, before arriving at any conclusion wrt classification of subject goods, I find it necessary to determine what constitutes the “structural elements”. In this regard, I note that the phrase “structural elements” having a specific meaning in construction terminology, are components that bear loads, provide stability, or form part of the load-bearing framework of a building. Upon examining the samples of the subject goods produced before me, I find that the panels are lightweight cellular plastic sheets unable to bear any significant load. Thus, as per my understanding, the panels are not integrated into the structural framework of the building but are applied as a decorative overlay on existing finished walls. The wall structure exists independently and functions identically whether these panels are present or absent. This is fundamentally different from true structural elements like drywall, which forms the actual wall surface, or partition systems, which create the spatial divisions. The mere fact that a product is used on walls does not make it a “structural element used in walls.” The category contemplates products that are integral to the wall structure itself, not decorative overlays applied to finished walls. I find these PVC panels remain essentially decorative sheets designed for aesthetic wall covering as a substitute of paint & wall papers, temporarily in nature and easily removable, lacking structural function, architectural complexity, or permanent integration into building frameworks. The correct classification under CT1-1 3921 reflects both the goods’ essential character as plastic sheets and their commercial understanding as decorative wall coverings. In view of above, I do not find force in the department’s argument.

5.12 Further, I find that the department has contended the classification of goods under 3925 as per Chapter Note 11(11) of this chapter, which covers “ornamental architectural features, for example, flutings, cupolas, dovecotes.” In support of the above said contention, the department has relied upon the specific reference to flutings as an illustrative example reinforces the legislative intent to cover profiled and ornamented architectural components, particularly those forming part of walls or ceilings. When designed for and used in permanent installation, such products constitute ornamental architectural features, as they form an integral part of the interior architectural framework of a building. On the contrary, I lind that the applicant has s►.►bmitted that the examples given in the 1-1xplanatory Notes are highly specialized architectural elements with specific structural and decorative functions. As per the applicant’s submission. flutings arc vertical grooves carved into columns or pilasters. serving both structural purposes to strengthen columns and ornamental purposes in classical architecture. Cupolas are small, dome-like structures on roofs, often used fur ventilation. light. or as bell towers. Dovecotes are specialized structures I’m housing pigeons or doves. In this regard. I hind that Flutings, cupolas. dovecotes are complex, three-dimensional architectural elements with specific functions and design requirements. They are not simple flat panels but are intricate structures that form distinctive architectural Features of buildings. The products under consideration are simple rectangular decorative panels with surface patterns such as stone textures, wood grain effects, or 3D designs. Moreover, I find that these products are used for “interior decoration purposes” and to “enhance the aesthetic appeal of domestic or commercial spaces,” which is precisely the function of decorative wall coverings, not architectural features. In view of above, I do not find force in the department’s argument.

5.13 I also note that the department has informed that an appeal has been filed in the department against advance ruling issued in the case of M/s Shri Ganesh on similar issue. On enquiry it was observed that no stay is granted against above order and this is settled legal position that mere filing an appeal does not amount to stay. In any case, advance ruling in case of other parties does not have any binding effect for other applicant. Therefore, observation of department has no relevance so far as this case is concerned. My ruling in this case is based on merit of this case and earlier rulings even issued by me does not create any binding precedent for me. Only order of higher forum like hon’ble Tribunal, High Court or Supreme Court on identical/similar issue has binding effect. In view of the fact that earlier order on similar issue is not quashed by any higher forum; I do not find any valid ground to reconsider my view on merit.

5.14 Thus, I find that the products retain the essential form of plates/sheets of plastics within the meaning of Note 10 to Chapter 39. The longitudinal interlocking/tongue-and-groove at the edges is an in-line extrusion profile and, on these facts, does not amount to “further working” of the type exemplified in the Chapter and explanatory notes (e.g., drilling, milling, framing, twisting, cutting into non-rectangular shapes). The HSN EN to 3921 explicitly embraces cellular and reinforced/laminated/supported sheet products that remain plates/sheets and are not covered by 3918/3919/3920 or Chapter 54. The subject panels fit that description.

6. In view of above discussion and findings, I hold that the following goods mentioned in application are classifiable under heading 3921 of the Customs Tariff; goods of polymers of styrene in sheet/panel form fall under 39211100; goods of polymers of vinyl chloride in the sheet/panel form fall under 39211200 and goods of polyurethanes in the sheet/panel form fall under 39211390; subject to verification of the actual composition, structure (cellular/non-cellular; reinforced/laminated/supported) by the field formation in this regard.

7. I, rule accordingly.