Case Law Details
In re Girish Rathod (GST AAAR Gujarat)
We find that CBEC Circular No. 433/66/98-CX-6 dated 27/11/1998 is relevant even today and has got persuasive value as on date. Further, Chapter Note 2(a)(4) to Chapter 59 says that fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments are excluded from Heading 5903 and are usually covered in Chapter 50 to 55, 58 or 60, depending on the materials used. At the same time, according to the Explanatory notes to the HSN of Heading 5903 (detailed in para 11.1 above), textile fabrics which are spattered by spraying with visible particles of thermoplastic material and are capable of providing a bond to other fabrics or materials on the application of heat and pressure are classifiable under heading 5903. Also, the process of manufacture of the fusible interlining of fabrics of cotton as submitted by the appellant appears to be similar to the one mentioned hereinabove. Further, according toCircular No. 433/66/98-CX-6 dated 27/11/1998, such classification should be treated as an exception to Chapter Note 2(a)(4) to Chapter 59. Even otherwise, the test results of the fabric ‘fusible interlining fabric of cotton’ of the appellant as compared to the exclusion clauses(1) to (5) of Chapter 2(a) has been discussed in detail in para-11.5 above which proves that the appellant’s fabric satisfies all the conditions/criteria for being classified under Heading 5903. However, there appears to be an anomaly here (with regard to Chapter Note2(a)(4) of Chapter 59) because the appellant in his submission (along with appeal) has stated that their fabric is having partial and porous coating with polyethylene powder which contradicts the test report of ATIRA which states that their fabric is not partially coated or partially covered but is covered with plastic polymer on one side. Assuming that the fabric of the appellant is partially coated or partially covered with plastic polymer as submitted by them, it would not fulfill the exclusion clause of Chapter Note 2(a)(4) of Chapter 59 and would therefore not fall under the Heading 5903 for falling under the exclusion clause of Chapter Note 2(a)(4) of Chapter 59 under these circumstances. However, since, according to Circular No. 433/66/98-CX-6 dated 27/11/1998, such classification should be treated as an exception to Chapter Note 2(a)(4) to Chapter 59, the fabric of the appellant would be covered under Heading 5903 only in view of the provisions of the said circular.
Further, it is also seen that the appellant has, nowhere in their grounds of appeal or in their written or oral submissions, taken the view that Circular No. 433/66/98-CX-6 dated 27/11/1998 has erred in treating fusible interlining cloth as a category of textile fabric that is spattered by spraying with visible particles of thermoplastic material and is capable of providing a bond to other fabrics or materials on the application of heat and pressure. In the absence of any such submission, it is reasonable to agree with the views expressed by CBEC in Circular No. 433/66/98-CX-6 dated 27/11/1998 that fusible interlining cloth is classifiable under Heading 5903. We, therefore, find that irrespective of the fact as to whether the fabric of the appellant fulfills the criteria for classification under Heading 5903 or otherwise as per exclusion clauses (1) to (5) of Chapter Note 2(a) of Chapter 59, it would still be classified under Heading 5903 only, on account of the Explanatory notes to the HSN, which states that ‘textile fabrics which are spattered by spraying with visible particles of thermoplastic material and are capable of providing a bond to other fabrics or materials on the application of heat and pressure are classifiable under heading 5903’ read with the grounds mentioned in Circular No. 433/66/98-CX-6 dated 27/11/1998. In view of the above, we find that the product ‘fusible interlining fabric of cotton’ of the appellant would undoubtedly be classifiable under Heading 5903 of the Customs Tariff Act, 1975 only.
In view of foregoing, we confirm the Advance Ruling No. GUJ/GAAR/R/86/2020 dated 17.09.2020 to the extent it has been appealed before us and hold that The product Fusible Interlining Fabrics of Cotton of the appellant M/s Girish Rathod (Jay Ambey), Ahmedabad is correctly classifiable under Heading 5903 of Chapter 59 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975).
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, GUJARAT
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