Case Law Details
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.
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