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Laminated Tarpaulins made of HDPE woven fabrics not to be classified under HSN 6306 AAAR decided

March 15, 2019[2019] 103 taxmann.com 210 (AAAR-WEST BENGAL)
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GST : In view of Note 1(h) to Section XI of GST Tariff Act, tarpaulins of HDPE woven fabrics, laminated as per specification of IS 7903:217 do not merit classification under chapter 63

• The applicant was a manufacturer of Tarpaulins made from High Density Polyethylene (HDPE). The applicant had filed an application for advance ruling in the matter that whether HDPE Woven Tarpaulin be classified under HSN 6306.

• The AAR after considering Section Notes 1(g) and 1(h) of Section XI of the Tariff Act and specifications issued by the Bureau of Indian Standards ruled that tarpaulins made of HDPE woven fabrics would not be classified under HSN 6306.

• The appellant had filed an instant appeal against the above advance ruling requesting to set aside/modify the impugned advance ruling passed by AAR.

• As per note 1(h) to section XI of the GST Tariff Act, section of textile and textile articles covering chapters 50 to 63 does not include, Woven, knitted or crocheted fabrics, felt or non-wovens, impregnated, coated, covered or laminated with plastics or articles thereof, of chapter 39.

• The appellant also produced a sample of the tarpaulin in question which was made of HDPE woven fabrics and was laminated with LLDPE. Since water proofing is the principal characteristic of a tarpaulin it goes without saying that HDPE woven fabric can be used as tarpaulin only when such fabric is laminated. Thus, the appellant's contention that the issue was related to tarpaulin, simplicitor, and not of laminated HDPE fabrics, is not the correct representation of facts. The process of lamination can neither be ignored nor treated in seclusion, as it is an integral and vital process for HDPE fabrics being put to use as tarpaulin. Therefore, in view of the Note 1(h) to Section XI of the GST Tariff Act, the tarpaulins of HDPE woven fabrics, laminated as per specification of IS 7903:2017, being expressly excluded, do not merit classification under chapter 63.

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