In re Fancy Ribbon House (CAAR Mumbai)
The Customs Authority for Advance Rulings (CAAR), Mumbai, addressed the classification of various textile rolls, including Nylon Taffeta, Polyester Taffeta, and Satin rolls, ranging in width from 10 mm to 305 mm. These products, proposed for import by Fancy Ribbon House, were evaluated for classification under the Customs Tariff Act, 1975. The applicant argued that the rolls, primarily used as labels, fell under Heading 5807, which pertains to “Labels, badges, and similar articles of textile materials, in strips or cut to shape or size, not embroidered.” The Authority reviewed past rulings and legal precedents, including similar cases like those of M/s Mahaveer Impex and M/s Mean Light Co., and consulted the Harmonized System of Nomenclature (HSN) Explanatory Notes to assess the applicable classification.
After extensive deliberation, the Authority concurred with the applicant’s stance, confirming that the products were correctly classified under Heading 5807. The ruling emphasized that these textile rolls, due to their design and functional characteristics, are akin to labels and meet the criteria outlined in the HSN explanatory notes. Furthermore, the decision reaffirmed the principles of classification based on common parlance and functional utility, as upheld in several legal judgments. The ruling concluded that the products are classifiable at the 8-digit level under specific sub-headings of Heading 5807, corresponding to their material composition, and are covered under Entry No. 153 of Schedule II of Notification 1/2017 – IGST (Rate), dated June 28, 2017.
