In re Gauge International LLP (CAAR Mumbai)
Summary: Customs Authority for Advance Rulings, Mumbai held that rolls of textile material proposed to be imported by Gauge International LLP, comprising various types of man-made fibre textile fabrics and intended for use as labels in garments, are not classifiable under CTH 58071090. The goods merit classification under CTH 58071020 where made of man-made fibre, subject to verification at the time of import that the imported goods conform to the description, construction and material composition declared by the applicant.
The applicant proposed to import 16 varieties of label rolls, including Nylon Taffeta, Polyester Satin, Acetate Taffeta, Dip Coated Taffeta, Hot Melt Fusing Taffeta, Recycled Nylon Taffeta, Recycled Micro Fibre Taffeta and Recycled Satin varieties, in multiple widths. It submitted that the products were rolls of man-made fibre textile fabrics, were not embroidered, were known in common parlance and trade as labels, were intended for printing trademarks, wash-care instructions, size, country of manufacture and similar information, and had no alternative use.
The applicant sought classification under CTH 58071090 and contended that the products attracted 5% IGST under Entry No. 370 of Schedule I of Notification No. 09/2025-Integrated Tax (Rate) dated 17.09.2025. The jurisdictional Commissionerate, however, considered woven man-made fibre products to fall under CTH 58071020. The Authority first examined Heading 5806, covering narrow woven fabrics other than goods of Heading 5807.
Referring to the HSN Explanatory Notes, it observed that Heading 5806 expressly excludes woven labels, badges and similar articles in strips, which are covered by Heading 5807 or 5810 as applicable. It then considered Heading 5807 and its HSN Notes, which cover labels of textile materials in the piece, in strips or cut to shape or size, not embroidered, including labels used for marking wearing apparel and bearing utilitarian inscriptions or motifs. The Authority found that the subject goods were specifically designed and intended for use as labels, were supplied in rolls in specified widths, possessed printable characteristics, had no alternative use and were made of man-made woven textile materials.
It held that these characteristics were relevant to classification under Heading 5807. The fact that the rolls were unprinted at the time of import did not take them outside Heading 5807 because the HSN Notes contemplate labels bearing inscriptions or motifs generally produced by weaving or printing and do not prescribe that printing must already exist at import. The Authority relied on the Calcutta High Court decision in M/s Bijoy Kumar Poddar v. Union of India, where plain label strips intended for printing were held to be labels/similar articles under Heading 5807. It also referred to the Supreme Court decisions in Atul Glass Industries Ltd. v. Collector of Central Excise and Indian Aluminium Cables Ltd. v. Union of India concerning commercial understanding, functional character and classification, and to Commissioner of Customs & C. Ex., Amritsar v. D.L. Steels on interpreting tariff expressions in their popular/commercial sense.
The Authority further considered its earlier rulings in Mahaveer Impex, Adeena Light Co. and Fancy Ribbon House, concerning similar textile label rolls. On the eight-digit classification, the Authority noted that CTH 58071010 applies to cotton, CTH 58071020 to man-made fibre and CTH 58071090 to “Other”. Since the applicant declared that Taffeta and Satin were woven fabrics and that Nylon and Polyester were man-made fibres, the products were specifically covered by CTH 58071020 and the residual CTH 58071090 was inapplicable. As the goods were held classifiable under CTH 58071020, the Authority further held that they were covered by Entry No. 370 of Schedule I of Notification No. 09/2025-Integrated Tax (Rate), dated 17.09.2025, and attracted IGST at 5%. The fourth question concerning the residual IGST rate did not arise because Question 3 was answered affirmatively.
Cases Discussed
- M/s Bijoy Kumar Poddar v. Union of India, 2000 (126) E.L.T. 393 (Calcutta)
- Atul Glass Industries Ltd. v. Union of India, 1986 (25) E.L.T. 473 (S.C.)
- Indian Aluminium Cables Ltd. v. Union of India, 1985 (21) E.L.T. 3 (S.C.)
- Commissioner of Customs & C. Ex., Amritsar v. D.L. Steels, 2022 (381) E.L.T. 289 (S.C.)
- M/s Mahaveer Impex, Ruling No. CAAR/Mum/ARC/01/2023 dated 17.01.2023
- M/s Adeena Light Co., Ruling No. CAAR/Mum/ARC/05/2024 dated 16.01.2024
- M/s Fancy Ribbon House, Ruling No. CAAR/Mum/ARC/192,193/Mumbai dated 03.01.2025
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s Gauge International LLP (IEC No.: ABEFG3056B) (hereinafter referred to as “the applicant”) has filed an application in Form CAAR-1 before the Customs Authority for Advance Rulings, Mumbai (hereinafter referred to as “CAAR” or “the Authority”). The application, along with the prescribed fee and supporting documents, was received in the secretariat of CAAR, Mumbai on 03.06.2026 in terms of section 28H (1) of the Customs Act, 1962. The applicant has sought an advance ruling under Section 28H (2) of the Customs Act, 1962 on questions relating to the classification of Rolls made of manmade fibre textile fabrics more specifically described in as under in ‘Table -A’ collectively referred to as ‘Products’ and the applicable IGST rate under sub-section (7) of Section 3 of the Customs Tariff Act, 1975 read with Notification issued on import of the said ‘products’ for imports through the ports of Chennai and Bangalore.
2. Applicant’s eligibility for Advance Ruling
The applicant holds a valid IEC No. ABEFG3056B and therefore qualifies as an “applicant” under section 28E(c) of the Customs Act, 1962. The question on which the advance ruling is sought is in respect of classification and the applicability of IGST of goods under the Customs Tariff Act 1975 which is admissible under Section 28H (2). The applicant has declared that the questions raised in the present application is not pending in its applicant’s own case before any officer of customs, the appellate tribunal, or any Court and is not a matter already decided by the appellate tribunal or any court. Accordingly, the application appears admissible under Section 28-I of the Customs Act, 1962.
3. Questions on which Advance Ruling is required:
Question 1. Whether the products proposed to be imported can be classified under CTH 58071090 of the First Schedule to the Customs Tariff Act, 1975 and leviable to customs duty of 10%?
Question 2. If answer to (a) above is negative, what is the classification of the products proposed to be imported?
Question 3: Whether the products are covered by entry no. 370 of Schedule I of Notification 9/2025 – IGST (Rate) 17 September 2025?
Question 4: If answer to (c) above is negative, what is IGST rate under sub-section (7) of Section 3 of the said Customs Tariff Act read with Notification issued on import of the products?
4. Submission by Applicant:-
Submissions of relevant Facts having a bearing on the aforesaid question raised to the Authority
4.1 The Applicant is having an IEC No. – ABEFG3056B and registered in the State of Karnataka vide GST registration no. 29ABEFG3056B1Z0. The applicant is registered office at Ground Floor, Flat No. 2, RT Street, 16th Cross Road, Sri Venkateshwara Sweet Meat Stall in Belepet, Chickpete, Bengaluru – 560053 (Karnataka). The applicant is engaged, inter-alia, in the business of purchase and sale of products in India.
4.2 The applicant vide letter dated 09.09.2026 has clarify that it proposed to import Rolls made of manmade fibers textile fabrics as specifically described in Table ‘A’.
TABLE – A
| Sr. No. | Description | Width (in mm) |
|---|---|---|
| 1 | Label Tape Nylon Taffeta | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 2 | Label Tape Polyester Satin Single Side | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 3 | Label Tape Polyester Satin Double Side | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 4 | Label Tape Satin Single Side | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 5 | Label Tape Satin Double Side | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 6 | Label Tape Acetate Taffeta | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 7 | Label Tape Dip Coated Taffeta | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 8 | Label Tape Hot Melt Fusing Taffeta | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 9 | Label Tape Nylon Taffeta Thermal | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 10 | Label Tape Dull Polyester Satin | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 11 | Label Tape Recycled Nylon Taffeta Thermal | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 12 | Label Tape Recycled Micro Fibre Taffeta | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 13 | Label Tape Recycled Single Side Satin White | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 14 | Label Tape Recycled Single Side Satin Black | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 15 | Label Tape Recycled Single Side Satin | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
| 16 | Label Tape Recycled Double Side Satin | 10, 12, 19, 25, 28, 30, 32, 35, 40, 45, 51, 64, 76, 102, 204, 300 |
4.3 The applicant vide email dated 09.04.2026 requested the supplier M/s.Zhejiang King Label Technology Co. Ltd. to provide a quotation for the products. The applicant’s supplier has classified the products under HSN code 58071090. The Company has received communication vide email dated 20.04.2026 from supplier for the same.
4.4 As per First Schedule of Customs Tariff Act, 1962, the basic customs duty for goods falling under HSN 5807 1090 is 10%. Similarly, as per entry no. 370 of Schedule I of Notification 9/2025 – IGST (Rate) 17 September 2025, the IGST rate for goods falling under HSN 5807 is 5%.
4.5 The ultimate customer of the products are the companies engaged in Manufactures of readymade garments. The products will be ultimately used for the purpose to capture trademarks, wash care instructions and other details like country of manufacturing, size, make etc. on the products for the reference of the customers. Separately, the website links of the foreign supplier elaborating on the use of products is provided in website https://www.hengxin-label.com
4.6 The products have following characteristics:
- The products are made of manmade fibers textile fabrics.
- The products are not embroidered
- The products are known as labels in common parlance and trade. The Indian suppliers are selling the rolls with HSN 58071090.
- There is no alternate use of the products except as labels
- The labels are stitched to products to provide information/ instruction about it to customers. The printing of such information is not legible & durable on the plain fabric and hence, a layer of coating has to be put to enable printing on the same.
- The Rolls made-up of Polyester, Taffeta, Satin etc has a dip coating of different thickness on either or both sides of the rolls depending on the requirements of the customer. The dip coating on the product facilitates printing of the product/ washing information on the labels which are later stitched to the products. It is submitted that the coated side of the roll shines compared to the side without coating.
- Further, it is submitted that typically the rolls shall be of the width 10mm to 300 mm for use in labels by the customers.
Applicant’s Interpretation:
Products classifiable under CTH 58071090.
4.7 Chapter no. 58 covers ‘Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery’. Further, Chapter heading 58071090 applies to ‘labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered’. The extract of chapter heading 58071090 is reproduced below:
| Tariff Item | Description of goods |
|---|---|
| 5807 | LABELS, BADGES AND SIMILAR ARTICLES OF TEXTILE MATERIALS, IN THE PIECE, IN STRIPS OR CUT TO SHAPE OR SIZE, NOT EMBROIDERED |
| 5807 10 | – Woven |
| 5807 10 10 | — Of cotton |
| 5807 10 20 | — Of man-made fibre |
| 5807 10 90 | — Other |
| 5807 90 | – Other : |
| 5807 90 10 | — Felt or non-woven |
| 5807 90 90 | — Other |
4.8 As per the World Customs – HSN code, the chapter heading 5807 covers labels of any textile material subject to conditions. The relevant extract is reproduced below:
“58.07 – Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered.
5807.10 – Woven
5807.90 – Other
Subject to the conditions specified below this heading covers:
(A) Labels of any textile material (including knitted). These include labels of a kind used for marking wearing apparel, household linen, mattresses, tents, soft toys or other goods. They are utilitarian labels bearing individual inscriptions or motifs. Such labels include, inter alia, commercial labels bearing the trade name or trade mark of the manufacturer or the nature of the constituent textile (“silk”, “viscose rayon”, etc.) and labels used by private individuals (boarding school pupils, soldiers, etc.) to identify their personal property; the latter variety sometimes bear initials or figures or comprise sometimes a framed space to make a hand written inscription.
(B) Badges and similar articles of any textile material (including knitted). This category includes badges, emblems, “flashes”, etc., of a kind normally sewn to the outer part of wearing apparel (sports, military, local or national badges, etc., badges bearing the names of youth associations, sailors’ cap badges with the name of a ship, etc.).
The above articles are classified in the heading only if the fulfil the following conditions:
(1) They must not be embroidery. The inscriptions or motifs on the articles classified here are generally produced by weaving (usually broché work) or by printing.
(2) They must be in the piece, in strips (as is usually the case) or in separate units obtained by cutting to size or shape but must not be otherwise made up.
This heading does not include labels, badges and similar products, which have been embroidered (heading 58.10) or made up otherwise than by cutting to shape or size (heading 61.17, 62.17, or 63.07).”
4.9 The products proposed to be imported by the applicant are meant to be used to capture trademark, wash care instructions and other details like country of manufacturing, size, make etc on the products for the reference of the customers.
4.10 The applicant relies on the Ruling of the Customs Authority for Advance Ruling – Mumbai in the case of CAAR Mumbai in the case of :
(i) M/s Fancy Ribbon House – CAAR/MUM/ARC/192,193/Mumbai dated 03.01.2025.
(ii) M/s Moonlight – CAAR/MUM/ARC/05/2024 dated 16.01.2024.
(iii) M/s Mahaveer Impex CAAR/MUM/ARC/01/2023 dated 17.01.2023 and
(iv)the decision of the Calcutta High Court in the case of M/s Bijoy Kumar Poddar vs Union of India 2000 (126) ELT 393 (Calcutta).
4.11 The relevant extract of Ruling in the case of M/s Fancy Ribbon House – CAAR/MUM/ARC/192,193/Mumbai dated 03.01.2025:
Para 7 of the Ruling on page – 20
“7. In view of above facts, circumstances of the case and the ratio of the legal pronouncements as discussed above my reply is ‘positive’ to both the questions (a) & (c) asked by the applicant in para 2.7 (supra) and I rule that the Rolls made of Nylon Taffeta roll, Polyester Taffeta rolls, Tearaway Taffeta roll, Iron on fusing Taffeta roll, Single side slit polyester satin roll, double side slit polyester satin roll, Single side woven edge polyester satin roll, Double side woven edge satin roll, Single side slit polyester cotton roll, Recyclable Single side slit polyester satin etc. which are available with varying range of millimeter to 305 millimeter more specifically described under in Table ‘A’ (supra) collectively referred to as ‘Products’ proposed to be imported by the applicant merit classification as articles similar to label of textile material in strips under CTH 5807 according to their constituting materials and design of the Customs Tariff (Accounting), the subject goods as reflected in Table ‘A’ are classifiable at 8-digit level under CTI 5807 1010 (of cotton), 5807 1020 (of man-made fibre) & 5807 1090 (other) according to their composition and characteristics. The above said ‘products’ are covered by entry no. 153 of Schedule II of Notification 1/2017 – IGST (Rate) 28 June 2017.”
4.12 The relevant extract of Ruling in the case of M/s Moonlight CAAR/MUM/ARC/05/2024 dated 16-01-2024
Para 7 of the Ruling on page – 18
“7. On the basis of foregoing discussions and findings, my reply is ‘positive’ to both the questions (a) & (c) asked by the applicant in para 2.3 (supra) and I rule that the Rolls made of Polyester, Nylon Taffeta, Satin etc. which are available with width ranges from 10 millimeter to 810 millimeter with printable feature more specifically described in Table ‘A’ (supra) collectively referred to as ‘Products’ proposed to be imported by the applicant merit classification as article similar to label of textile material in strips under CTH 5807 specifically under sub-heading 58071020 of the First Schedule to the Customs Tariff Act, 1975 and also said ‘products’ are classifiable at 8 digit level under CTI 5807 1010 (of cotton), 5807 1020 (of man-made fibre) & 5807 1090 (other) according to their composition and characteristics and said ‘products’ are covered by entry no. 153 of Schedule II of Notification 1/2017 – IGST (Rate) 28 June 2017.”
4.13 The relevant extract of Ruling in the case of M/s Mahaveer Impex CAAR/MUM/ARC/01/2023 dated 17 January 2023.
Para 6.5 of the Ruling on Page -13
“……I also find that in various courts in a plethora of cases have held that HSN explanatory notes have a persuasive effect in deciding the matter of classification. Keeping in view the observation of apex Court in various decisions referred in foregoing paras as well as the decision of High Court decision in case of M/s Bijoy Kumar Poddar vs Union of India, I find that the said products have to be considered as articles similar to labels of textile materials in strips and accordingly are classifiable under heading CTH 58.07. I do not find any grounds to disagree with the High Court decision in case of M/s Bijoy Kumar Poddar vs Union of India 2000 (126) ELT 393 (Calcutta) on the issue of classification in the instant case.”
4.14 In view of above, the rolls made of polyester, Taffeta, Satin etc proposed to be imported by the applicant, meant for printing wash care instructions & fabric contents, shall be classifiable under Chapter heading 5807 1090.
Goods to be classified as understood in trade and common parlance:
4.15 The term ‘labels’ is not defined in the Customs Tariff.
4.16 It is submitted that the Hon. Bombay High Court in the case of M/s. Pleasurise Chemicals reported in 1997(95) E.L.T.203 (Bom.) in para 14 has observed as follows:
“14. The principles that emerge from the above interpretation can be summed up thus : Where no definition is provided in the statute for ascertaining the correct meaning of a fiscal entry, the same should be construed as understood in common parlance or trade or commercial parlance. Such words must be understood in their popular sense. The strict or technical meaning or the dictionary meaning of the entry is not be resorted to. The nomenclature given by the parties to the word or expression is not determinative or conclusive of the nature of the goods. The same will have to be determined by application of the well-settled rules or principles of interpretation which have been referred to as ‘common parlance’ rule, ‘trade or commercial parlance’ rule, ‘common sense rule of interpretation’ and ‘user test’. The application of the principles will again depend on the facts and circumstances of each case.”
4.17 Further, the Supreme Court in the case of Dunlop India Ltd. & Madras Rubber Factory Ltd reported in 1983 (13) E.L.T. 1566 (S.C.) in para 31 & 36 has observed as follows:
“31. It is well established that in interpreting the meaning of words in a taxing statute, the acceptation of a particular word by the Trade and its popular meaning should commend itself to the authority.
36. We are, however, unable to accept the submission. It is clear that meanings given to articles in a fiscal statute must be as people in trade and commerce, conversant with the subject, generally treat and understand them in the usual course. But once an article is classified and put under a distinct entry, the basis of the classification is not open to question. Technical and scientific tests offer guidance only within limits. Once the articles are in circulation and come to be described and known in common parlance, we then see no difficulty for statutory classification under a particular entry.”
4.18 Further, the Bombay High Court in the case of M/s. Kantilal Nanchand and Co. reported in 2000-(123) E.L.T.371 (Bom.) in para 12 has observed as follows:
“12. It is now well-settled by judicial decisions that when an expression is not defined in a Statute, the meaning to be given to it is the one which is has in popular or trade parlance.”
4.19 Further, the Karnataka High Court in the case of M/s. Bella Premier Happy Hygiene Care Pvt. Ltd. reported in 2018 (17) G.S.T.L. 608 (Kar.) in para 15 has observed as follows:
“15. It is well-settled that if a commodity can by more rational understanding or analysis be brought or related to specific entry in the tax laws, the same cannot be taxed under the residuary entry and what is important to apply the Trade Parlance Test or Common Parlance Test and not to apply the hair-splitting exercise to apply the technical terms.”
4.20 In view of the above judgements, it is submitted that in the present case as well, labels are not specifically defined in the notification. The correct meaning of the same should be construed as understood in common parlance or trade or commercial parlance and that hair-splitting exercise to apply the technical terms or the dictionary meaning of the entry is not to be resorted to.
Products are known as ‘labels’ in trade parlance
4.21 In the present case, the applicant submits that the products proposed to be imported are treated as labels in the trade. It can be observed from the name / trade name of the supplier i.e. Zhejiang King Label. The website link of the supplier providing end use of the products here – https://www.hengxin-label.com
4.22 In view of the above, it is submitted that it is well established by the applicant that the products proposed to be imported are ‘labels’ by the persons in the trade dealing with the subject goods. Therefore, applying the ratio of the said judgement cited above, it is submitted that the subject products proposed to be imported shall mean ‘labels’ and are classifiable under the chapter heading 58071090.
Functional Test
4.23 The Hon. Supreme Court in the case of Atul Glass Industries Ltd. 1986 (25) E.L.T. 473 (S.C.) has held that classification of the product can also be based on functional test i.e. the function the product performs. In this case the dispute was classification of Screens fitted in motor vehicles as wind screens, rear screens and door screens. The court observed as follows while approving the classification as part of car.
“8. The test commonly applied to such cases is: How is the product identified by the class or section of people dealing with or using the product? That is a test which is attracted whenever the statute does not contain any definition. ……… It is generally by its functional character that a product is so identified ……… When a consumer buys an article, he buys it because it performs a specific function for him. There is a mental association in the mind of the consumer between the article and the need it supplies in his life. It is this functional character of the article which identifies it in his mind. In the case of a glass mirror, the consumer recalls primarily the reflective function of the article more than anything else. It is a mirror, an article which reflects images. It is referred to as a glass mirror only because the word glass is descriptive of the mirror in that glass has been used as a medium for manufacturing the mirror. The basic or fundamental character of the article lies in its being a mirror, it was observed by this Court in Delhi Cloth and General Mills Co. Ltd. v. State of Rajasthan & Ors. (1980) 3 SCR 1109 – 1980 (6) E.L.T. 383 (S.C.) which was a case under the Sales Tax law.
“In determining the meaning or connotation of words and expressions describing an article or commodity the turnover of which is taxed in a sales tax enactment, if there is one principal test by well settled it is that the words or expressions must be construed in the sense in which they are understood in the trade, by the dealer and the consumer. In the present case, it is they who are concerned with it, and it is the sense in which they understand it that constitutes the definitive index of the legislative intention when the statute was enacted.”
That was also the view expressed in Geep Flashlight Industries Ltd. v. Union of India and Others – 1985 (22) E.L.T. 3. Where the goods are not marketable that principle of construction is not attracted. Indian Aluminium Cables Ltd. v. Union of India and Others – (1985) 3 S.C.C. 284 = 1985 (21) E.L.T. 3 (S.C.). The question whether thermometers, lactometers, syringes, eye-seeing glasses and scientific glasses could be described as “glassware” for the purpose of the Orissa Sales Tax Act, 1947 was answered by the Orissa High Court in State of Orissa v. Janta Medical Stores (1976) 37 STC 33 in the negative. To the same effect is the decision of this Court in Indo International Industries v. Commissioner of Sales Tax, Uttar Pradesh, (1981) 3 S.C.R. 294 = 1981 (8) E.L.T. 325 (S.C.), where hypodermic clinical syringes were regarded as falling more accurately under the entry relating to “hospital equipment and apparatus” rather than under the entry which related to “glassware” in the U.P. Sales Tax Act.”
4.24 Thus, it is submitted that the classification of any product is based on ultimate function which it performs.
4.25 In this case, the subject products are used as labels to capture trademarks, wash care instructions and other details like country of manufacturing, size, make etc on the products for the reference of the customers.
4.26 Thus, the function of the subject products is as labels. Hence, it is submitted that applying the ratio of the above judgment, the classification of subject products is 58071090.
No alternate use available of the products
4.27 It is submitted that the one or both sides of Rolls proposed to be imported by the applicant shall be coated/ processed specially to enable printing.
4.28 It is a common practice of the retailers to stitch labels to the products to provide wash care information or details about the supplier/ make etc. The printing of such information is not legible & durable on the plain fabric and the normal fabric printing is not clear and printing gets smudged. Further, it is important that the information printed should stay for a longer period and even after washing.
4.29 Accordingly, the fabric undergoes a process like fabric washing by aqua hydrogen dioxide liquid caustic, Dyeing, Fluorescent bleacher, high pressure calendaring or by coating which enable printing on the same. The said processes/ coating on the fabric facilitates printing on the fabric, which is later stitched to the products. It is submitted that the coated/ processed side of the Rolls shines compared to the other side. We have obtained five samples of the rolls as detailed below:
| Sr. No. | Description | CODE | SIZE |
|---|---|---|---|
| 1 | Label Tape Nylon Taffeta | NT637 | 25 |
| 2 | Label Tape Polyester Satin Single Side | PS520 | 25 |
| 3 | Label Tape Polyester Satin Double Side | PS220 | 25 |
| 4 | Label Tape Satin Single Side | WS106 | 25 |
| 5 | Label Tape Satin Double Side | WJ206 | 25 |
| 6 | Label Tape Acetate Taffeta | AT109 | 25 |
4.30 It is apparent from the sample that the side coated/processed shines compared to the other side.
4.31 In view of the above, we submit that the Rolls with coating/ processing either on one side or both sides are meant only for the purpose of use as labels to capture product/supplier/wash care information.
4.32 In view of above, the Rolls proposed to be imported by the applicant shall be classified as ‘labels’ or ‘similar articles’ as the Chapter Tariff Heading 5807 1090 specifically covers all the products used as labels or similar articles.
4.33 It is submitted that the products proposed to be imported by the applicant do not have an alternate use other than as labels.
4.34 The Hon’ble Calcutta High Court in the case of M/s Bijoy Kumar Poddar vs Union of India 2000 (126) ELT 393 (Calcutta) has held that sub-heading 5807 provides and covers labels and similar articles. In this case the dispute was of classification of reels of 250 yards each of textile fabrics.
“25. The facts are not in dispute that the petitioner has imported plain label strips described as cloth for printing. The sample of that material also produced in the Court and learned Counsel submits that there cannot be any other use of this material, except for printing the labels and in the trade market under the catalogues, these plain strips are called labels. Learned Counsel for the respondent could not point out any use of material produced in the court other than the use of the plain strips for purpose of printing labels. The material is known in the trade market as labels. We do not find any justification to put that material under the sub-heading 59.07. Sub-heading provides for woven fabrics of chapter 54 and not of plain weave woven strips of width 1.5 cm to 3.5 cm. In correct heading should be 58.07 as that entry does not cover only the labels, but also the similar materials.”
4.35 It is submitted that the applicant also intends to import similar reels for sale in domestic market. Thus, basis the principles laid down in by the Hon’ble High Court, the products shall be classified under CSH 58071090.
Textile labels printed or otherwise are classifiable under HSN 5807 1090
4.36 It is submitted that the CTH 5807 1090 does not require a label to be printed for classification under the heading. Further, there is no such requirement in the chapter and section notes.
4.37 The applicant relies on the below paras of the decision in the case of Bijoy Kumar Poddar (supra). The High Court observed that if the unprinted label is not label in strict sense then in that case the material imported can be said similar to label. The relevant extract is reproduced below:
“20. Sub-heading 58.07 provides and covers labels and similar articles. If it is not label in strict sense. In that case the material imported can be said similar to label.
23. Unprinted labels if not accepted giving narrow meaning to it. It should be accepted as similar articles as that of label. Specially, when in the trade world it is known as label.”
4.38 Further, the CSH 5807 covers all the products used as labels not embroidered and in strips or cut to shape or size.
4.39 Thus, basis the principles laid down in the Hon’ble High Court, the products shall be classified under CSH 58071090.
4.40 The Rolls would be imported in standard sizes and can be cut as per the requirement of the customer.
4.41 It is submitted that the Rolls comes in a specified size as maintained by the suppliers and commonly accepted in the trade practices.
4.42 The applicant shall import the Rolls as per the standard size maintained by the supplier and subsequently sell the same to the Indian customers who will cut to size as per their requirements. Further, the Rolls have multiple industry applications like garments, toys, automobile and the same are required to be cut in the size as per the product’s requirement and hence, it does not come with marking.
4.43 In case the Rolls are given a specific marking for cutting then the same will have a limited application and can be used only by a particular customer/ industry. However, the applicant will import the Rolls and then identify the customer, and hence, the Rolls cannot come with a specific cut marking.
4.44 It is submitted that the Rolls without marking shall also be meant for use labels and hence, it is classifiable under CTH 58071090.
4.45 In view of above submission, it is submitted that the Rolls are classifiable under CTH 580710 and subject to basic customs duty of 10% under the First schedule of the Customs Tariff Act, 1975 and IGST of 5% under entry 370 of Schedule I of Notification 9/2025-IGST (Rate) dated 17 September 2025.
Customs duty rate and IGST rate shall be as applicable to HSN 58071090
4.46 The applicant believes that the products proposed to be imported by the applicant falls under HSN 58071090.
4.47 Hence, the customs duty rate and IGST rate shall be as follows:
| Tax | Rate | Tariff Entry or Serial no of Notification |
|---|---|---|
| Basic Customs Duty | 10% | As per First Schedule CTH 58071090 |
| IGST | 5% | Entry 370 of Schedule I of Notification 9/2025-IGST (Rate), dated 17 September 2025 |
5. Ports of Import and reply from jurisdictional Commissionerate:
5.1 The applicant in their CAAR-1 application has indicated that they intend to import the subject goods through the jurisdictional Commissionerates i.e. “(1) The Commissioner of Customs, Chennai-II (Import), Custom House No. 60, Chennai and (2) The Commissioner of Customs, ICD-Bengaluru (INBLR), Bangalore. Accordingly, the application was forwarded to the concerned jurisdictional Commissionerates for furnishing their comments vide letter dated 30.06.2026 and 25.06.2026 respectively.
5.2 Reply from jurisdictional Commissionerate i.e. the Commissioner of Customs, Chennai-II (Import), Chennai has been received vide letter dated 07.08.2026. The comment are follows:
A. Admissibility of the Application:
- Eligibility (Section 28-E (c)): The applicant possesses a valid IEC (ABEFG3056B) and intends to import the subject goods. Hence, the applicant appears eligible to seek advance ruling.
- Nature of Activity: The applicant proposes to import the stated label tape rolls and has sought clarification prior to importation. The activity falls within the purview of Section 28H of the Customs Act, 1962.
B. Comments on the Merits of the Questions Raised:
- Classification under the Customs Tariff Act, 1975: The applicant has sought classification of the proposed label tape rolls under CTI 58071090. The applicant submits that the products are made of man-made fibers, are not embroidered, and possess a dip coating to facilitate the printing of wash care instructions and trademarks. It is observed that Chapter Heading 5807 explicitly covers “Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered”. Although the fabric is dip-coated, the primary functional utility and trade parlance of the product align with utilitarian labels. Therefore, the goods are rightly classifiable under Heading 5807. However, this Commissionerate disagrees with the specific 8-digit classification proposed by the applicant (58071090). The applicant explicitly states that the products consist of Nylon Taffeta and Polyester Satin. In textile terminology, Taffeta and Satin are specifically woven fabrics, and both Nylon and Polyester are inherently man-made fibres. As per the First Schedule to the Customs Tariff Act, 1975, sub-heading 580710 covers “Woven” labels, and within this, CTI 58071020 specifically covers woven labels “of man-made fibre”. Therefore, applying Rule 3(a) of the General Rules for the Interpretation of the Import Tariff, the goods strictly merit classification under the specific entry CTI 58071020 “Other”, subject to standard physical verification at the time of import to confirm the goods match the declared material composition.
- Applicability of IGST Notification: If classified under CTI 58071020, the goods would be covered under Entry No. 370 of Schedule I of Notification 9/2025 – IGST (Rate) dated 17 September 2025, attracting an IGST rate of 5%. This Commissionerate is in agreement with the applicant’s interpretation on the applicability of this tax rate.
- Comments regarding pendency at Legal or Review stage: As per the verification reports received from the Legal and Review Sections of this Commissionerate, no case relating to the questions raised in the present Advance Ruling application is pending before any Customs Officer, the Appellate Tribunal/CESTAT, or any Court. Furthermore, there is no information to suggest the question raised in the same as in a matter already decided by the Appellate Tribunal or any Court. Finally, there are no active cases or proceedings pending against the applicant, M/s Gauge International LLP, within the jurisdiction of this Commissionerate.
5.3 However, the comments/reply from the jurisdictional Commissionerate i.e. Commissioner of Customs, ICD-Bengaluru (INBLR), Bangalore have not been received till date.
6. Details of Personal Hearing: A personal hearing in the matter was conducted on 04.08.2026 at the office of the CAAR, Mumbai as the applicant had requested to be heard in person. During the personal hearing Shri Vaibhav Shah, Advocate and authorized representative of the applicant appeared and presented the applicant’s case regarding the classification of the subject product proposed to be imported. He submitted that the subject product merit classification under CTH 5807 as the products are used exclusively for label making and are supplied in specified measurements. He further submitted that CTH 5806 was not the appropriate classification and relied upon earlier rulings of the CAAR. He also furnished copies of the earlier CAAR rulings for consideration.
6.1 Nobody appeared for the PH from the department.
7. Additional Submission by Applicant: The applicant vide letter dated 11.09.2026 confirmed that the products detailed in Table-A (supra) are woven in nature. The applicant further submitted that they concur with the classification proposed by the jurisdictional commissioner.
8. Discussion and Findings
8.1 I have carefully considered the application dated 03.06.2026 filed by the Applicant, the facts and documents placed on record, submissions made during the personal hearing held on 04.08.2026, comments received from jurisdictional commissionerate, applicant’s clarification letter dated 09.09.2026, the applicant’s additional submission vide letter dated 11.09.2026 and all materials placed on record. I have also examined the relevant provisions of the Customs Act, 1962, the First Schedule to the Customs Tariff Act, 1975, the General Rules for Interpretation of the Import Tariff (GIR), the relevant Section and Chapter Notes, the HSN Explanatory Notes and the judicial decisions and advance rulings relied upon by the Applicant.
8.2 I find that the issue for determination in the present application is the classification of the rolls of man-made textile material proposed to be imported by the applicant, as detailed in “Table-A” (supra) having different width.
8.3 The applicant submitted that the goods proposed to be imported are textile materials presented in rolls comprising various types of manmade fibers textile fabrics including Nylon Taffeta, Polyester Satin, Single Side, Acetate Taffeta, Dip Coated Taffeta, Hot Melt Fusing Taffeta, Dull Polyester Satin and recycled variants thereof etc. The goods are proposed to be imported in different widths. The products are stated to be non-embroidered and depending upon their type, may be coated or otherwise processed on one or both sides to facilitate printing and to impart the requisite surface characteristics.
8.4 The applicant further submitted that the subject products are known as labels in common parlance & trade and Indian suppliers are selling the rolls with HSN 58071090. The subject products are specifically manufactured and supplied for use as labels on garments. They are intended to carry information such as trademark/brand name, wash-care instruction, country of manufacture, size, make and other particulars, inter-alia, relevant to the garment or product on which they are affixed or stitched. The applicant has also submitted that the subject goods have no alternate use and are exclusively used for making labels.
8.5 Thus, in their imported condition, the subject goods are textile materials in rolls which are specifically designed and intended for use as labels on garments. The fact that the goods are imported in rolls and may require printing or cutting, as the case may be, does not alter their essential character when the goods are specifically manufactured and supplied for use as labels. Therefore, the nature and character of the goods, as established from the facts of the present case, are required to be kept in view while determining their appropriate classification under the Customs Tariff.
8.6 I find that the applicant has sought classification of the subject goods under CTI 5807 and the jurisdictional Commissionerate i.e. the Commissioner of Customs, Chennai-II (Import), Chennai has also furnished comments with reference to CTI 5807. I further find that the issue regarding classification of the same or similar rolls of textile material under CTH 5807 vis-à-vis CTH 5806 has already been examined by this Authority in the cases of M/s Mahaveer Impex, M/s Moon Light Co. and M/s Fancy Ribbon House, wherein the Authority examined similar products, namely, rolls made of Polyester, Nylon Taffeta, Satin, etc., having widths ranging from 10 millimetres to 810 millimetres, with intended for use as labels or similar articles. In the present case, Shri Vaibhav Shah, Advocate and authorized representative of the applicant has submitted similar submissions and relied upon the aforesaid rulings and relevant judicial pronouncements in support of the claim for classification of the subject goods under CTH 5807. I have gone through the aforesaid rulings and the submissions made by the authorized representative and find that the said rulings are relevant for determining the classification of the subject goods.
8.7 At the outset, I proceed to examine the scope of Heading 5806. The relevant tariff entries under Heading 5806 are reproduced below:
58.06 covers narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs).
5806 10 00 – Woven pile fabrics (including terry towelling and similar terry fabrics) and chenille fabrics
5806 20 00 – Other woven fabrics, containing by weight 5% or more of elastomeric yarn or rubber thread
5806 31 – Other woven fabrics:
5806 31 10 — Of cotton
5806 31 20 — Typewriter ribbon cloth
5806 31 90 — Other
5806 32 00 — of man-made fibres
5806 39 — of other textile materials:
5806 39 10 —- Goat hair puttis tape
5806 39 20 —- Jute webbing
5806 39 30 —- Other narrow fabrics of jute
5806 39 90 —- Other
5806 40 00 – Fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)
8.8 In order to understand the scope of tariff heading 5806 it is essential to refer to the HSN Explanatory notes to CTH 58.06 which provide as under:
(A) Narrow Woven Fabrics
In accordance with Note 5 to this Chapter, this heading includes as narrow woven fabrics:
(1) Warp and weft fabrics in strips of a width not exceeding 30 cm, provided with selvedges (flat or tubular) on both edges. These articles are produced on special ribbon looms; several ribbons often being produced simultaneously; in some cases, the ribbons may be woven with wavy edges on one or both sides.
(2) Strips of a width not exceeding 30 cm, cut (or slit) from wider pieces of warp and weft fabric (whether cut or slit longitudinally or on the cross) and provided with false selvedges on both edges, or a normal woven selvedge on one edge and a false selvedge on the other. They may also be created when a fabric is treated before it is cut into strips in a manner that prevents the edges of those strips from unravelling. No demarcation between the narrow fabric and its false selvedges need be evident in that case. Strips cut (or slit) from fabric but not provided with a selvedge, either real or false, on each edge, are excluded from this heading and classified with ordinary woven fabrics.
(3) Seamless tubular warp and weft fabrics, of a width when flattened, not exceeding 30 cm. Fabrics consisting of strips with the edges joined to form a tube (by sewing, gumming or otherwise) are, however, excluded from this heading.
(4) Bias binding consisting of strips, with folded edges, of a width, when unfolded, not exceeding 30 cm, cut on the cross from warp and weft fabrics. These products are cut from wide fabrics and not provided, therefore, with a selvedge, either real or false. These products remain classified here when watered (“moiré”), embossed, printed, etc.
(B) Bolducs
This heading also covers narrow fabrics (bolducs) of a width usually ranging from a few mm to 1 cm, consisting of warp (parallelised yarns, monofilaments or textile fibres) without weft but assembled by means of an adhesive. These are mainly used for tying parcels; some are used for making millinery plaits.
This heading excludes:-
(a) Bandages, medicated or put up in forms or packings for retail sale (heading 30.05).
(b) Narrow woven fabrics with woven fringes, braided galloons and braids (heading 58.08).
(c) Narrow woven fabrics more specifically covered by other headings, e.g., those having the character of:
(1) Woven labels, badges and similar articles, in strips (heading 58.07 or 58.10 as the case may be).
8.9 In view of the aforesaid tariff entry and the HSN Explanatory Notes of Heading 5806, I find that the Heading 5806 primarily covers narrow woven fabrics, subject to the specific exclusions provided therein. The HSN Explanatory Notes clarify that narrow woven fabrics which are more specifically covered by other headings are excluded from the scope of Heading 5806. In particular, woven labels, badges and similar articles in strips are specifically excluded from Heading 58.06 and are covered under Heading 5807 or 5810 as applicable. Thus, the mere fact that the subject goods are narrow woven textile materials does not make their classification under Heading 5806. Accordingly, where the subject goods possess the essential characteristics of woven labels, badges or similar articles, their classification is required to be examined under Heading 58.07 rather than Heading 58.06.
8.10 Chapter heading 5807 covers labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered.
5807 10 – Woven
5807 10 10 — Of cotton
5807 10 20 — Of man-made fibre
5807 10 90 — Other
5807 90 – Other:
5807 90 10 — Felt or non-wovens
5807 90 90 — Other
Heading 58.07 of the First Schedule of the Customs Tariff Act, 1975 covers “Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered.” The heading is further divided into woven articles under sub-heading 5807 10 and other articles under sub-heading 5807 90. Within sub-heading 5807 10, the tariff provides separate entries according to the constituent material.
8.11 In order to understand the scope of tariff heading 5807 it is essential to refer to the HSN Explanatory notes to CTH 5807 which provide as under:-
(A) Labels of any textile material (including knitted). These include labels of a kind used for marking wearing apparel, household linen, mattresses, tents, soft toys, or other goods. They are utilitarian labels bearing individual inscriptions or motifs. Such labels include, inter alia, commercial labels bearing the trade name or trade mark of the manufacturer or the nature of the constituent textile (“silk”, “viscose rayon”, etc.) and labels used by private individuals (boarding school pupils, soldiers, etc.) to identify their personal property; the latter variety sometimes bear initials or figures or comprise sometimes a framed space to make a hand written inscription.
(B) Badges and similar articles of any textile material (including knitted). This category includes badges, emblems, “flashes”, etc., of a kind normally sewn to the outer part of wearing apparel (sporting, military, local or national badges, etc., badges bearing the names of youth associations, sailors’ cap badges with the name of a ship, etc.).
The above articles are classified in this heading only if they fulfil the following conditions:
(1) They must not be embroidery. The inscriptions or motifs on the articles classified here are generally produced by weaving (usually broché work) or by printing.
(2) They must be in the piece, in strips (as is usually the case) or in separate units obtained by cutting to size or shape, but must not be otherwise made up.
This heading does not include labels, badges and similar products, which have been embroidered (heading 58.10) or made up otherwise than by cutting to shape or size (heading 61.17, 62.17 or 63.07).
8.12 The HSN Explanatory Notes to Heading 58.07 state that the heading covers labels of any textile material including knitted labels, used for marking wearing apparel, household linen, mattresses, tents, soft toys or other goods. Such labels are utilitarian labels bearing individual inscriptions or motifs and include commercial labels bearing the trade name or trade mark of the manufacturer or the nature of the constituent textile. The HSN Explanatory Notes further provide that the articles covered by Heading 58.07 must not be embroidered and must be in the piece, in strips or in separate units obtained by cutting to size or shape, and must not be otherwise made up.
8.13 In the present case, the goods proposed to be imported are textile rolls made of woven man-made textile materials such as Nylon Taffeta, Polyester Satin, Satin, Acetate Taffeta, Dip Coated Taffeta, Hot Melt Fusing Taffeta, Dull Polyester Satin and recycled variants thereof etc. The applicant has submitted that the goods are specifically intended for use as labels on garments for displaying the trademark, wash-care instructions, country of manufacture, size, make and other information for the customers. The applicant has further submitted that the goods are not embroidered and are imported in rolls in specified widths. From the descriptions of the products as seen in Table-A above, I find that the subject goods are of various types having sizes ranging from 10 mm to 300 mm. I further find that the applicant has relied upon various judicial pronouncements and advance rulings in support of its claim for classification under CTH 5807. The applicant has also submitted that the subject goods are made of man-made woven textile materials, are not embroidered and have no use other than as labels. I find that these characteristics are relevant for determining whether the subject goods satisfy the requirements of Heading 5807.
8.14 I further find that the subject goods are not proposed to be imported as ordinary textile fabrics for subsequent conversion into various articles. The applicant has specifically submitted that the rolls are specially processed/coated so as to facilitate printing or information thereon and that the coated or processed surface is suitable for durable printing. The applicant has also submitted that the goods have no alternative use other than their use as labels. These characteristics indicate that the subject goods are not merely narrow woven fabrics of a general nature, but are specifically designed and processed for use as labels bearing information, inscriptions or motifs relating to the goods on which they are intended to be affixed.
8.15 I also find that the subject goods are imported in rolls and are subsequently cut according to the requirements of the customers does not, by itself, preclude their classification under Heading 5807. The HSN Explanatory Notes to Heading 5807 specifically contemplate labels being presented “in the piece, in strips or in separate units obtained by cutting to size or shape”. Therefore, the mere fact that the goods are imported in running rolls and are subsequently cut to the required dimensions cannot be considered determinative of classification under Heading 5806, particularly when the goods otherwise possess the essential characteristics of labels or similar articles intended for such use.
8.16 I further find that the subject goods may be imported without any printing thereon does not take them outside the scope of Heading 5807. The HSN Explanatory Notes of Heading 5807 do not prescribe that a label must necessarily bear printing at the time of importation. The said Notes contemplate labels bearing inscriptions or motifs generally produced by weaving or printing, while the heading itself covers labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered. Therefore, the absence of printing on the subject goods in the imported condition cannot be considered conclusive against their classification under Heading 5807, particularly when the goods are specifically manufactured and supplied for use as labels and are intended to carry the relevant information after importation.
8.17 In this regard, I find support from the decision of the Hon’ble Calcutta High Court in M/s Bijoy Kumar Poddar v. Union of India, 2000 (126) E.L.T. 393 (Calcutta). The Court has held plain label strips as “Labels” considering that it is meant for printing and there is no alternative use of the same. The related sub-heading 5807 provides and covers labels and similar articles. The relevant portion of paragraph 25 of the judgment is reproduced below:
“25. The facts are not in dispute that the petitioner has imported plain label strips described as cloth for printing. The sample of that material also produced in the Court and learned Counsel submits that there cannot be any other use of this material, except for printing the labels and in the trade market under the catalogues, these plain strips are called labels. Learned Counsel for the respondent could not point out any use of the material produced in the court other than the use of the plain strips for purpose of printing labels. The material is known in the trade market as labels. We do not find any justification to put that material under the sub-heading 59.07. Sub-heading provides for woven fabrics of chapter 54 and not of plain weave woven strips of width 1.5 cm to 3.5 cm. In correct heading should be 58.07 as that entry does not cover only the labels, but also the similar materials.”
8.18 In the case of Atul Glass Industries Ltd. and Others v. Collector of Central Excise and Others, 1986 (25) E.L.T. 473 (S.C.), wherein the Hon’ble Supreme Court has observed in para 8 as under: –
“8. The test commonly applied to such cases is: How is the product identified by the class or section of people dealing with or using the product? That is a test which is attracted whenever the statute does not contain any definition. …… It is generally by its functional character that a product is so identified…… When a consumer buys an article, he buys it because it performs a specific function for him. There is a mental association in the mind of the consumer between the article and the need it supplies in his life. It is the functional character of the article which identifies it in his mind. In the case of a glass mirror, the consumer recalls primarily the reflective function of the article more than anything else. It is a mirror, an article which reflects images. It is referred to as a glass mirror only because the word glass is descriptive of the mirror in that glass has been used as a medium for manufacturing the mirror. The basic or fundamental character of the article lies in its being a mirror, it was observed by this Court in Delhi Cloth and General Mills Co. Ltd. v. State of Rajasthan & Ors. (1980) 3 SCR 1109 – 1980 (6) E.L.T. 383 (S.C.) which was a case under the Sales Tax law.”
8.19 Similarly, in the case of Commissioner of Customs & C. Ex., Amritsar v. D.L. Steels – 2022 (381) E.L.T. 289 (S.C.), it was observed by the Hon’ble Court that
“…… well-settled principle that words in a taxing statute must be construed in consonance with their commonly accepted meaning in the trade and their popular meaning. When a word is not explicitly defined, or there is ambiguity as to its meaning, it must be interpreted for the purpose of classification in the popular sense, which is the sense attributed to it by those people who are conversant with the subject matter that the statute is dealing with. This principle should commend to the authorities as it is a good fiscal policy not to put people in doubt or quandary about their liability. The common parlance test is an extension of the general principle of interpretation of statutes for deciphering the mind of the law-maker.”
8.20 Applying the aforesaid principles to the facts of the present case, I find that the subject goods are specifically manufactured and supplied as label tapes and are intended to be used for displaying the trade mark, brand name, wash-care instructions, country of manufacture, size, make and other particulars relating to the garment or other product. The applicant has also submitted that the subject goods have no alternative use as ordinary textile fabrics and are specially processed or coated to facilitate durable printing. Thus, their functional character and intended use establish that the subject goods are articles in the nature of labels or similar articles rather than ordinary narrow woven fabrics.
8.21 I further find that the expression “similar articles” occurring in Heading 5807 is significant. The Apex Court in the case of CCE, Shillong vs. Wood Craft Products Ltd., 1995 (77) E.L.T. 23 (S.C.) has observed that “Words & Phrases – ‘similar’ and ‘same’ – The word ‘similar’ is expansive and not restrictive like “same”. It would, no-be out of place to mention that in a similar context in Nat Steel Equipment Private Ltd. vs. Collector of Central Excise, 1988 (34) E.L.T. 8 (S.C.), while considering the meaning of the word “similar” in a tariff item, it was stated as follows:
“……The expression ‘similar’ is a significant expression. It does not mean identical but it means corresponding to or resembling in many respects; somewhat like; or having a general likeness. The statute does not contemplate that goods classed under the words of ‘similar description’ shall be in all respects the same; if it did, these words would be unnecessary. These were intended to embrace goods but not identical with those goods……”
8.22 I therefore find that the subject goods possess the essential characteristics of articles similar to labels of textile materials in strips and are specifically covered by Heading 5807. Consequently, by virtue of the exclusion contained in the HSN Explanatory Notes to Heading 5806 in respect of narrow woven fabrics having the character of woven labels, badges and similar articles, the subject goods are not appropriately classifiable under Heading 5806. The classification is required to be determined under Heading 5807.
8.23 I further note that the jurisdictional commissionerate has also opined that the subject products are rightly classifiable under Heading 5807. The relevant portion of the comments is reproduced below:
“The applicant has sought classification of the proposed label tape rolls under CTI 5807 10 90. The applicant submits that the products are made of man-made fibers, are not embroidered, and possess a dip coating to facilitate the printing of wash care instructions and trademarks. It is observed that Chapter Heading 5807 explicitly covers “Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered”. Although the fabric is dip-coated, the primary functional utility and trade parlance of the product align with utilitarian labels. Therefore, the goods are rightly classifiable under Heading 5807.
8.24 I further find that a similar issue was examined by the Customs Authority for Advance Rulings, Mumbai in M/s Mahaveer Impex, Ruling No. CAAR/Mum/ARC/01/2023 dated 17.01.2023, wherein rolls made of polyester, taffeta, satin etc., having widths ranging from 10 mm to 810 mm and intended for use as labels, were held classifiable under Heading 5807.
8.25 Similarly, in M/s Adeena Light Co., Ruling No. CAAR/MUM/ARC/05/2024 dated 16.01.2024, rolls made of polyester, nylon, taffeta, satin etc., having widths ranging from 10 mm to 810 mm and possessing printable features, were held to merit classification under Heading 5807.
8.26 Further, in the case of M/s Fancy Ribbon House, Ruling No. CAAR/MUM/ARC/192,193/Mumbai dated 03.01.2025, rolls of nylon taffeta, polyester taffeta, tearaway taffeta, iron-on fusing taffeta, polyester satin and similar textile rolls, having widths ranging from 10 mm to 305 mm and intended for use as labels, were held classifiable as articles similar to labels of textile material in strips under Heading 5807, with classification at the 8-digit level according to their composition and characteristics.
8.27 I find that the goods in the present application are substantially similar in nature and intended use to the goods considered in the aforesaid rulings. In particular, the description of the goods, their textile composition, presentation in rolls, specified widths, printable characteristics and intended use for displaying product are comparable.
8.28 It is also pertinent to note that classification is required to be determined in accordance with the General Rules for Interpretation of the Import Tariff. In terms of Rule 1, classification is to be determined according to the terms of the headings and the relevant Section and Chapter Notes. The HSN Explanatory Notes, though not statutory in nature, constitute a valuable aid to the interpretation of the headings.
8.29 In the present case, heading 5807 specifically covers labels and similar articles of textile materials in the piece or in strips, not embroidered. The subject goods are textile articles presented in rolls/strips, are not embroidered, are specially intended for use as labels, and are stated to have no alternate use. Therefore, the description and characteristics of the goods are consistent with the scope of Heading 5807.
8.30 I also find that the fact that the goods are not printed at the time of importation does not in the facts of the present case take them outside the scope of Heading 5807. The applicant has established that the goods are specifically processed/coated to facilitate printing and are imported for the specific purpose of being used as labels. This aspect is also consistent with the reasoning adopted in the decision in Bijoy Kumar Poddar and the aforesaid CAAR rulings concerning similarly printed/printable textile strips.
8.31 In view of the foregoing discussion, I find that the subject products as detailed in Table-A (Supra) being rolls of textile material specifically intended and designed for use as labels or similar articles, presented in strips and not embroidered, merit classification under Heading 5807 of the First Schedule to the Customs Tariff Act, 1975.
8.32 In the present case, the Applicant has declared that the subject Products are made of woven man-made fibres. The jurisdictional Commissionerate has, upon examination of the Applicant’s description, observed that Taffeta and Satin are woven fabrics and that Nylon and Polyester are man-made fibres. The said Commissionerate has accordingly opined that, subject to physical verification, the subject Products merit classification under CTI 5807 1020 – Of man-made fibre rather than CTI 5807 1090.
8.33 I find that the aforesaid observation of the jurisdictional Commissionerate is relevant for determining the appropriate eight-digit classification. The Applicant, vide letter dated 11.09.2026, has further confirmed that the Products detailed in Table-A are woven and has concurred with the classification proposed by the jurisdictional Commissionerate.
8.34 The relevant tariff entries under Heading 5807 are reproduced below for ready reference:
5807 covers labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered.
5807 10 — Woven
5807 10 10 — Of cotton
5807 10 20 — Of man-made fibre
5807 10 90 — Other
5807 90 — Other:
5807 90 10 — Felt or non-wovens
5807 90 90 — Other
Considering that sub-heading 5807 10 covers woven labels and similar articles of textile materials. Within the said sub-heading, CTI 5807 10 10 covers articles “Of cotton”, CTI 5807 10 20 covers articles “Of man-made fibre”, and CTI 5807 10 90 covers “Other”. In the present case, the subject Products have been declared to be woven and made of man-made fibre as specifically described in Table-A (supra). Accordingly, the subject Products satisfy the description of CTI 5807 10 20 (of man-made fibre). I, therefore, find that the residual entry CTI 5807 10 90 (other) is not applicable to the subject Products.
8.35 In view of the foregoing discussion, the facts and circumstances of the case, the description and material composition of the subject Products, the confirmation furnished by the Applicant vide letter dated 11.09.2026, and the opinion of the jurisdictional Commissionerate, I rule that the Rolls of textile material made of man-made fibres, having widths ranging from 10 millimetres to 300 millimetres, more specifically described in Table-A (supra), collectively referred to as the “Products” proposed to be imported by the Applicant, merit classification under CTI 5807 10 20 – Of man-made fibre, under the First Schedule to the Customs Tariff Act, 1975. The classification is subject to verification at the time of import that the imported goods conform to the description, construction and material composition declared by the applicant.
8.36 I further find that the subject Products, having been held classifiable under heading 5807 1020 falling under Heading 5807, are covered by the entry under Entry No. 370 of Schedule I of the Notification No. 09/2025–Integrated Tax (Rate), dated 17.09.2025. The relevant portion of the said notification is reproduced below:
Notification No. 9/2025-Integrated Tax (Rate)
(i) 5 per cent. In respect of goods specified in Schedule-I
Schedule I – 5%
| S. No. | Chapter/Heading/Subheading/Tariff | Description of goods |
|---|---|---|
| 370 | 5807 | Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered. |
The said entry covers “Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered” falling under Heading 5807 and prescribes IGST at the rate of 5 per cent. Accordingly, the subject Products, when imported under CTI 5807 10 20, are liable to IGST at the rate of 5 per cent, subject to the terms and conditions of the said notification.
9. I rule accordingly as follows:
Question 1: Whether the products proposed to be imported can be classified under CTH 5807 10 90 of the First Schedule to the Customs Tariff Act, 1975 and leviable to customs duty of 10%?
Answer: No. The subject Products are not classifiable under CTI 5807 10 90. They merit classification under CTI 5807 10 20 – Of man-made fibre.
Question 2: If answer to Question 1 is negative, what is the classification of the products proposed to be imported?
Answer: The subject Products merit classification under CTI 5807 10 20 – Of man-made fibre, under the First Schedule to the Customs Tariff Act, 1975, subject to verification at the time of import that the imported goods conform to the description, construction and material composition declared by the Applicant.
Question 3: Whether the products are covered by Entry No. 370 of Schedule I of Notification No. 09/2025-Integrated Tax (Rate), dated 17.09.2025?
Answer: Yes. The subject Products, being classifiable under CTI 5807 10 20 falling under Heading 5807, are covered by Entry No. 370 of Schedule I to the said Notification.
Question 4: If answer to Question 3 is negative, what is IGST rate under sub-section (7) of Section 3 of the Customs Tariff Act read with the notification issued in respect of the Products?
Answer: Since the answer to Question 3 is affirmative, this question does not arise.
