In re Mean Light Co. (CAAR Mumbai)
Introduction: In a recent ruling by the Customs Authority for Advance Rulings (CAAR) in Mumbai, the classification of rolls made of Polyester, Nylon Taffeta, Satin, etc., was deliberated. The applicant, Mean Light Co., sought an advance ruling on the classification of these rolls, their nature, and the applicable Integrated Goods and Services Tax (IGST) rate for imports through the port of Chennai.
Background: Mean Light Co., having IEC No. 0707028647, filed an application (CAAR-1) before the CAAR, Mumbai, on 10.04.2023. The Chennai Customs House responded on 19.12.2023, presenting arguments on the classification of the rolls, emphasizing the importance of the nature of the goods. The dispute revolved around whether the rolls should be classified under Chapter Heading 5807 or other relevant headings.
Chennai Customs House’s Position: Chennai Customs House argued that the imported rolls, intended for use as labels, should not be classified under Heading 5807. Instead, they suggested various classifications based on the nature, width, and coating of the rolls. The Chennai Customs House referred to the Explanatory Notes and conditions under Heading 5807, asserting that the goods did not meet the criteria for labels.
Applicant’s Arguments: In response, Mean Light Co. clarified that the goods were woven and contested Chennai Customs House’s interpretation of the Explanatory Notes. They argued that the rolls, even without printing, should be classified under Heading 5807. The applicant highlighted case laws supporting their position and emphasized the functional character of the goods for identification.
Personal Hearing: A personal hearing took place on 21.12.2023, where the authorized representatives of Mean Light Co. reiterated their submissions. Notably, no representation was made by Chennai Customs House during the hearing. The applicant submitted rebuttals, addressing Chennai Customs House’s observations and presenting additional facts and clarifications.
CAAR Mumbai’s Decision: After considering all submissions, the CAAR Mumbai delivered its ruling on the classification of the rolls. They referred to a similar case (M/s. Mahaveer Impex) ruling in favor of the applicant and concurred with the arguments presented by Mean Light Co.’s authorized representatives.
Ruling and Classification: The CAAR Mumbai ruled that the rolls made of Polyester, Nylon Taffeta, Satin, etc., with printable features, should be classified under Heading 5807. Specifically, sub-heading 5807 1020 was identified, and the products were deemed to be covered by entry no. 153 of Schedule II of Notification 1/2017 — IGST (Rate) dated 28 June 2017.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. Mean Light Co. (having IEC No. 0707028647 and hereinafter referred to as ‘the applicant’, in short) filed an application (CAAR-1) for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR in short). The said application was received in the secretariat of the CAAR, Mumbai on 10.04.2023 along with its enclosures in terms of Section 2811 (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’ also). The applicant is seeking advance ruling on the classification of Rolls made of Polyester, Nylon Taffeta, Satin etc. which are available with width ranges from 10 millimeter to 810 millimeter with giftable feature more specifically described 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 read with Notifications issued on import of said ‘products’ for imports through the port f Chennai.
2. Applicant has stated as follows in their statement of relevant facts having a bearing on the question(s) raised enclosed with the CAAR-1 application:
2.1. The applicant, inter-alia, is engaged in the business of purchase and sale of said `products’ in India. The applicant has proposed to import said ‘products’ more specifically described in Table-A as under:-
Table ‘A’
