Classification of non-woven fabrics & PPSB Bed Sheet: HC directs appellate authority to readjudicate

Harsh Polyfabric Private Limited Vs Union of India & Ors. (Calcutta High Court)

The case involves Harsh Polyfabric Private Limited (“the petitioner”) challenging an appellate authority’s decision which classified Spunbonded Polypropylene Bed Sheets (PPSB Bed Sheets) under the heading 5603 instead of 6304 of the Customs Tariff Act, 1975. This classification led to the partial denial of a refund of accumulated Input Tax Credit (ITC) due to an inverted duty structure, amounting to Rs. 39,61,030.

Petitioner’s Background and Classification

Harsh Polyfabric Private Limited, incorporated under the Companies Act, 1956, manufactures and supplies non-woven fabrics and PPSB Bed Sheets. They classified non-woven fabrics and PPSB Bed Sheets under chapters 5603 and 6304, respectively. The manufacturing process involves using Polypropylene Granules (PP Granules) in a Spun Bond technology process to produce non-woven fabric, which is then used to make PPSB Bed Sheets.

GST and VAT Regime

Please become a Premium member. If you are already a Premium member, login here to access the full content.