In re Mean Light Co (GST AAR Karnataka)
In the instant case, the impugned products, as per the applicant, are woven fabrics having width less than 30 cm; Taffeta rolls made up of polyester yarn with acrylic coating to protect from raveling or fraying and also to have better printing quality; Satin rolls made up of polyester yarn, with optical or non-optical coating for brightening and to remove impurities, having plain selvedges on both sides of the fabric; cut with hot blades to arrest fabric fraying. Thus the impugned products qualify to get covered under ‘Narrow Woven Fabrics’.
16. Now we proceed to examine whether the impugned products get covered under tariff heading 5806 or 5807. The tariff heading 5806 covers the woven fabrics that are not covered under heading 5807 consisting of warp without weft assembled by means of an adhesive (Bolducs). It is an admitted fact that the impugned products are woven products consisting of warp and weft and are not assembled by means of an adhesive. Thus the impugned products are not covered under tariff heading 5806.
17. Further tariff heading 5807 covers Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered. Further tariff heading 5807 is divided broadly into two categories wherein tariff heading 5807.10 covers woven and tariff heading 5807.90 covers others. In this regard we invite reference to Explanatory Notes to tariff heading 5807 wherein it is specified that this heading covers (i) Labels of any textile material (including knitted) and (ii) Badges and similar articles of any textile material (including knitted), subject to the following conditions:
a) They must not be embroidery. The inscriptions or motifs on the articles classified here are generally produced by weaving (usually broche work) or by printing.
b) They must be in the piece, in strips (as is usually the case) or in separate limits obtained by cutting to size or shape but must not be otherwise made up.
Chapter Note 6 to chapter 58 specifies that the expression “embroidery” means, inter alia, embroidery with metal or glass thread on a visible ground of textile fabric, and sewn appliqué work of sequins, beads or ornamental motifs of textile or other materials.
18. In the instant case, the impugned products are not embroidery and fulfill the aforesaid conditions. Now we proceed to examine the sub-headings under heading 5807, which are as under:
