Case Law Details
In re East Hooghly Agro Plantation Pvt. Ltd. (GST AAAR West Bangal)
On examination of samples produced by the Appellant during the course of hearing it is clear that as the principal characteristic of tarpaulin is water proofing. unless the HDPE woven fabric is laminated it cannot be used to make tarpaulin. The process of lamination cannot he ignored or treated in isolation. It is an integral and vital process in manufacturing tarpaulin from HDPE woven fabric.
Therefore, in view of Note 1(h) to Section XI of the GST Tariff Act mentioned above, the tarpaulins of HDPE woven fabric, laminated as per specification of IS 7903:2017, being expressly excluded, do not merit classification under Chapter 63.
The question as to whether the product can be classified under HSN 5903, Note 2 to Chapter 59 is relevant which excludes “products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of ant’ resulting change of colour (Chapter The sample produced by the Appellant was seen with the naked eye to he completely coated on both sides by plastic material and thus the laminated HDPE woven fabric in the instant case is not a textile material and does not merit classification under HSN 5903.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, WEST BANGAL
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