In re Shree Ambica Geotex Pvt. Ltd (GST AAR Gujarat)
The applicant, engaged in the manufacture and sale of textile products including Geomembranes, sought an advance ruling on the correct GST classification of its product. The primary issue was whether Geomembranes should be classified under Heading 5911, Sub-heading 59111000 as textile products for technical use, or under an alternative sub-heading.
The applicant explained that Geomembranes are manufactured using High Density Polyethylene (HDPE) granules and other materials. The process involves extrusion of HDPE into thin sheets, which are slit into strips of width less than 5 mm. These strips are then woven into fabric using warp and weft techniques. The woven fabric is further coated or laminated on both sides using plastic materials such as LDPE and LLDPE to impart waterproofing and strength. Additional processes like trimming, sealing, and cutting are carried out to produce the final product used for applications such as pond lining and agricultural purposes.
The applicant argued that the product is essentially a textile fabric that undergoes further processing and is used for technical purposes. It relied on the understanding that any woven fabric, regardless of the material used, qualifies as a textile. It further submitted that Heading 5911 specifically covers textile products and articles used for technical purposes, including those coated or laminated with materials such as plastics. The applicant also emphasized that Geomembranes are widely used in technical applications like aquaculture and water-proofing, reinforcing their classification under this heading.
