In re Malli Ramalingam Mothilal (GST AAR Tamil Nadu)
Whether Kalava Raksha Sutra is exempted under the Sl.No. 148 in Any Chapter and also classification of HSN code of the product?
It is evident that the commodity manufactured by the Applicant is a braided yarn made by a braiding machine which takes in dyed yarn of multiple numbers. The items are not by themselves Kalva raksha sutra sold directly to consumers but long lengths of thread of various composition sold in loose rolls to the Applicant’s buyers who need to be further cut to individual sizes to make them Kalava Sutra. As per Section Note (B)(1) and (2) to Section XI covering Chapter 50 to 63, braided textile yarn are not included in chapter 50 to 55, but in Chapter Heading 5607, if they are tightly plaited .
Braided textile yarns supplied by the Applicant made Polypropylene Yarn is classifiable under 56074900, made of Other Synthetic Yarn is classifiable under 56075090, made of Cotton is classifiable under 560790 90.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,TAMILNADU
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamilnadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
Mr. MaIli Ramalingam Mothilal, Prop.of M/s.M.R.Mothilal (hereinafter called as M/s. M.R.Mothilal or Applicant) doing business at No.2/3-A, Sarathalam, A.A. Road, CMR Road, Munichalai Road, Madurai-625 009 is engaged in the manufacture of Kalava Raksha Sutra (Sacred Thread) in different colours and are selling the same in Kilograms to the Intra-State buyers as well as Inter-State buyers. They are registered under GST vide Registration No. 33AATPM2415J1ZL.
The Applicant has sought advance ruling on the
” Classification of the Commodity ‘Kalava Raksha Sutra (Sacred Thread)’ manufactured and supplied by them “.
The Applicant had submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under Sub-rule (1) of Rule 104 of CGST Rules 2017 and SGST Rules 2017.
2. The Applicant has stated that they manufacture Kalava raksha sutra; the said commodity falls under S.No. 148 under item IX under the head puja samagiri in Notification No. 02/2017-C.T.(Rate); the said commodity is manufactured using the material like cotton yarn, PP Yarn, art silk yarn etc.; the manufactured product is just like a thread and commonly known as Kalava Raksha sutra. The Applicant has requested to classify the commodity.
3. The Applicant was heard in person. The Applicant stated that they are purchasing Viscose, Polyester, Poly-Propylene yarn & cotton yarn and make it into They stated that they manufacture braided cords by using braiding machine. From dyed PP yarn, dyed cotton, dyed polyester where yarns taxguru.in of each material (8 or 12 or 16 yarns) are braided together. They are cut up to lengths equivalent to various weights 20 to 100 grams. They are then sold by weight to their buyers. They sell by weight to their buyers, who in turn cut it in different sizes and make into Kalava (Raksha Sutra). The Applicant had submitted Purchase invoices, Sales invoices relating to both Intra-State and Inter-State. The Applicant also submitted relevant photographs of the manufacturing process of Kalava (Raksha Sutra) of the product.
4. The submissions made by the Applicant were examined. In the case at hand, the Applicant purchases different types of yarn and make it into threads and sells by weight to the buyers, who cut and make into Kalava (Raksha Sutra) for individual sale. It is seen from the purchase invoices that the yarns purchased are cotton Yarn (HSN Code: 5205), Polyester Yarn (HSN Code: 5402); Viscose Filament Rayon Yarn (HSN 5403). The sale invoice under Product description has given as `KALAVA (Raksha sutra)- `400X20-1/2PPP Red’; No. 3/4 Black-49; Red-6; No.1/2 Lemon Yellow’ sold by Kgs weight. These dyed yarns are put on a braiding machine and multiple yarns ( 8 or 12 or 16 ) are twisted or braided together to form the braided yarns of the Applicant. They are cut up to lengths equivalent to various weights of 20 to 100 grams. These are braided yarns of either cotton or polyester, viscose or rayon or polypropylene thread made into skeins and sold as such taxguru.in without being further cut into specific sizes for individual use as Kalva raksha sutra. The items are not by themselves Kalva raksha sutra sold directly to consumers but long lengths of thread of various composition sold in loose rolls to the Applicant’s buyers who need to be further cut to individual sizes to make them Kalava Sutra.
5. From the above, it is seen that the items in question are skeins of thread of various composition i.e. cotton, polyester, viscose filament rayon, polypropylene. The Applicant has sought the classification of the same.
5.1 In terms of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods.
5.2 Section XI of Customs Tariff covers ‘Textile and Textile articles’ of chapter 50 to 63. Section Note (B)(1) and (2) to Section XI covers Yarns.
(B) Yarns
(1) General.
Textile yarns may be single, multiple (folded) or cabled. For the purposes of the Nomenclature :
(i) Single yarns means yarns composed either of :
(a) Staple fibres, usually held together by twist (spun yarns); or of
(b) One filament (monofilament) of headings 54.02 to 54.05, or two or more filaments (multifilament) of heading 54.02 or 54.03, held together, with or without twist (continuous yarns).
(ii) Multiple (folded) yarns means yarns formed from two or more sin le yarns, including those obtained from monofilaments of heading 54.04 or 54.05 twofold, threefold, fourfold, etc. yarns) twisted together in one folding operation. However, yarns composed solely of monofilaments of heading 54.02 or 54.03, held together by twist, are not to be regarded as multiple (folded) yarns.
The ply (“fold”) of a multiple (folded) yarn means each of the single yarns with which it is formed.
(iii) Cabled yarns means yarns formed from two or more yarns, at least one of which is multiple (folded), twisted together in one or more folding operations.
The ply (“fold”) of a cabled yarn means each of the single or multiple (folded) yarns with which it is formed.
The above yarns are sometimes called multiple wound (assembled) yarns when they are obtained by juxtaposition of two or more single, multiple (folded) or cabled yarns. These are to be regarded as single, multiple (folded) or cabled yarns according to the type of the yarns of which they are composed.
Single, multiple (folded) or cabled yams may have loops or slubs at intervals (bouclé or looped, slub or flamme yarn). They may also be composed of two or more yarns one of which is folded back on itself at intervals to give the effect of a loop or swelling.
Polished or glazed yarns are those which have been treated with preparations based on natural substances (wax, paraffin, etc.) or on synthetic substances (acrylic resins in particular). They are then made glossy by means of polishing rollers.
Yarns are designated according to their measurement. Various systems of numbering or counting are still in use. The Nomenclature, however, uses the universal “Tex” system, which is a unit for expressing linear density, equal to the weight in grams of one kilometre of yarn, filament, fibre, or other textile strand. Decitex is 0.1 Tex. The following formula for the conversion of metric numbers into decitex numbers is applied :
10,000=Decitex
Metric number
Yarns may he unbleached, scoured, bleached, creamed, dyed, printed, marled, etc. They may also have been gassed (i.e., singed to remove fibres which give them a hairy appearance), mercerised (i.e., treated under tension with sodium hydroxide), oiled, etc.
However, Chapters 50 to 55 do not include :
(a) Rubber thread, textile covered, and textile yams impregnated (including dipped), coated, covered or sheathed with rubber or plastics, of heading 56.04.
