Deputy Commissioner, Central GST Vs. M/s. Shree Ambica Geotex Pvt. Ltd (GST AAAR Gujarat)
The present appeal was filed by the Department before the Appellate Authority for Advance Ruling (AAAR), Gujarat, challenging an advance ruling that classified geomembranes under HSN 5911 as textile products used for technical purposes.
The respondent is engaged in manufacturing geomembranes and related textile-based products. The manufacturing process involves converting High Density Polyethylene (HDPE) granules into thin sheets, which are then slit into tapes or strips of less than 5 mm width. These strips are oriented, wound, and woven into uncoated fabrics using weaving techniques. The woven fabric is subsequently laminated with plastic layers on one or both sides to create waterproof geomembrane products used for technical applications such as pond lining.
Read AAR Ruling in this case: Geomembrane merits classification at HSN 5911, tariff item 59111000
The core issue in the appeal was the classification of geomembranes. The Department contended that the product should be classified under HSN 3926 as articles of plastic, relying on earlier rulings, tribunal decisions, and High Court judgments which classified similar HDPE-based products under Chapter 39. It argued that geomembranes manufactured from HDPE strips are essentially plastic products and not textile articles.
