In re Ashima Dyecot pvt. ltd (GST AAR Gujarat)
Question: Whether the article ‘Fusible Interlining cloth for cotton fabrics’ manufactured by the applicant falls under Chapter 5903 or under Chapter 52 or 55 of the HSN?”
Answer: The product ‘Fusible Interlining cloth for cotton fabrics’ manufactured by the applicant M/s Ashima Dyecot Private Limited, Ahmedabad is correctly classifiable under Heading 5903 of Chapter 59 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
BRIEF FACTS
The applicant M/s. Ashima Dyecot pvt.ltd. located at Texcellence Complex, Nr.Anupam Cinema, Khokhra, Ahmedabad-380021 are engaged in the manufacture and supply of fabrics and garments. The present application is filed to determine the classification of the fusible interlining cloth for cotton fabrics which is manufactured by the applicant. The applicant has stated that they are classifying the said product under the HSN Code 5903 attracting 12% rate of Tax. However, the competitors of the Applicant are classifying the said product under the Chapter 52/55 attracting 5% rate of duty depending upon the primary content of the fabric resulting in business loss to the applicant.
2. The applicant has submitted that Fusible interlining cloth for cotton fabrics is a layer of fabric inserted between the shell fabric and the lining of a garment to give clothing a suitable appearance and stability; that based on the application method, there are two kinds of interlinings: Sewn interlining and fusible interlining; that the interlining which could be fixed with the garments components by sewing is called sewn interlining and for the preparation of sewn interlining a piece of fabric is treated with starch and allowed to dry and finally sewn with the main fabric; that in addition, the fusible interlining which could be fixed with the garments components by applying heat and pressure for a certain time is called fusible interlining. The applicant has stated that these fusible materials provide with several properties which can enhance the appearance of finished garment by influencing the following characteristics:-
a. Handle and bulk.
b. Shape retention.
c. Shrinkage control.
d. Crease recovery.
e. Appearance after washing or dry cleaning.
3. The applicant has stated that the interlining fabrics is mainly used in the collars, cuffs, etc. part of the garments and samples of the interlining fabrics will be produced at the time of hearing; that under the erstwhile Central Excise regime, the Applicant classified the said product under the HSN code 5903; that under the Central Excise regime, majority of the textile products including the cotton fabrics along with products falling under the HSN 5903 were exempted vide Notification No.30/2004 dated 09.07.2004. The relevant entry of the HSN code 5903 is as under:
