Facts:
M/s. US Polytech (“the appellant”) is a manufacturer of Polypropylene non-woven bags seeking to ensure the classification of goods and GST rate on such goods under Central Goods and Services Tax Act, 2017 (“CGST Act’’) and West Bengal Goods and Services Tax Act, 2017 (“WBGST Act’’).
Issues Involved:
What is the classification of Non-woven bags made from Non-woven fabric and the Rate of tax to be charged under the CGST Act and WBGST Act?
Appellant Contentions:
The Appellant refer the case of Mega Flex Plastics Ltd, wherein the Hon’ble Appellate Authority was deciding the classification of polypropylene leno bags relying upon the ruling in the case of Raj Pack Well wherein the Hon’ble Madhya Pradesh High Court was dealing with the issue of classification of HDPE woven sacks.
The Appellant claimed that though polypropylene is essentially in a form of plastic, however, once it passes various processes and becomes a polypropylene fabric, it becomes a textile product, classifiable under Tariff heading 5603. Thereafter, any further process thereon to manufacture bag would take it to the Tariff heading 6305.
Held:
The Hon’ble Appellate Authority for Advance Ruling, West Bengal vide Appeal Case No. 02/WBAAR/APPEAL/2019 dated May 13, 2019 upholds that the ‘PP Non-woven bags’ manufactured by appellant from ‘Non-woven fabric’ under heading 5603 fall under heading 6305 33 00 and the applicable tax rate for the bags of value not exceeding Rs.1000 per piece attract GST @5% under serial no. 224 of schedule I of Notification No. 01/2017-C.T.(Rate) dated June 28, 2017 and Serial No. 224 of Schedule-l of Notification No.1125-FT dated June 28, 2017 under WBGST Act, 2017.
Citation: 105 taxmann.com 349 (AAAR-WEST BENGAL)