In re Gauge International LLP (CAAR Mumbai)
Summary: Customs Authority for Advance Rulings, Mumbai held that rolls of textile material proposed to be imported by Gauge International LLP, comprising various types of man-made fibre textile fabrics and intended for use as labels in garments, are not classifiable under CTH 58071090. The goods merit classification under CTH 58071020 where made of man-made fibre, subject to verification at the time of import that the imported goods conform to the description, construction and material composition declared by the applicant.
The applicant proposed to import 16 varieties of label rolls, including Nylon Taffeta, Polyester Satin, Acetate Taffeta, Dip Coated Taffeta, Hot Melt Fusing Taffeta, Recycled Nylon Taffeta, Recycled Micro Fibre Taffeta and Recycled Satin varieties, in multiple widths. It submitted that the products were rolls of man-made fibre textile fabrics, were not embroidered, were known in common parlance and trade as labels, were intended for printing trademarks, wash-care instructions, size, country of manufacture and similar information, and had no alternative use.
The applicant sought classification under CTH 58071090 and contended that the products attracted 5% IGST under Entry No. 370 of Schedule I of Notification No. 09/2025-Integrated Tax (Rate) dated 17.09.2025. The jurisdictional Commissionerate, however, considered woven man-made fibre products to fall under CTH 58071020. The Authority first examined Heading 5806, covering narrow woven fabrics other than goods of Heading 5807.
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