In re Sanghvi Products (GST AAR Gujarat)
The Gujarat Appellate Authority for Advance Ruling considered the classification of PTFE braided gland packing manufactured by M/s. Sanghvi Products from pure PTFE fibre yarn. The product is manufactured through interlocked or cross-plaited braiding and is supplied in square or round sections ranging from 3mm to 25mm for use as stuffing-box packing in pumps, valves and other industrial equipment. The applicant was classifying the product under HSN 39209949 at 18% GST but sought classification under HSN 59119090 at 5%, contending that it was a textile product for technical use.
The Authority examined the relevant provisions of Chapters 39 and 59 of the Customs Tariff Act, 1975, including Section XI Note 1(g), Chapter 39 Note 2(p), Chapter 59 Note 8 and the relevant tariff headings. The applicant relied upon the description of textile products for technical uses and the classification of similar products under HSN 59119090. The Authority considered the nature, composition and dimensions of the product while determining the appropriate classification.
The Authority noted that PTFE is a plastic material and that the product has a cross-sectional dimension of 3mm to 25mm. It held that the product falls outside the scope of Section XI in view of the relevant exclusion under Section XI Note 1(g). Accordingly, the product could not be classified under Heading 5911 as a textile product. The Authority also considered the judicial decisions cited in the ruling, including M/s. Raj Packwell Ltd. v. UOI and Commissioner of Customs (Import) vs. M.s Welkin Foods.
