Page 127 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : V. PONRAJ 637
use as ‘Rice Bags’. They purchase their raw material viz., Non-Woven Fabric
Rolls [HSN : 5603] made of 100% Polypropylene Fibre usually in white colour,
which are cut into pieces of desired sizes after printing various designs, logos
required by their customers and are stitched into Bags. They are selling the non-
woven Fabric Bags classifying under HSN : 6305 mainly to the rice suppliers and
the bags of 5Kg, l0Kg, 20Kg and 25Kg capacity are sold at the sale value not ex-
ceeding Rs, 1,000/- per piece and GST is paid. The issue for decision before us is
the appropriate Rate of Tax and HSN code for Non-woven Rice Bags manufac-
tured by the applicant.
5.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017-
Central Tax (Rate), dated 28-6-2017, tariff heading, sub-heading, heading and
chapter shall mean respectively a tariff item, sub-heading, heading and chapter
as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for
the interpretation of the First Schedule to the Customs Tariff Act, 1975, including
the Section and Chapter Notes and the General Explanatory Notes of the First
Schedule shall be applied for the interpretation and classification of goods.
5.3 In the case at hand, we find that the applicant purchases Non-
woven Fabric rolls made of 100% Polypropylene which are then printed with
desired designs and cut into shape before being stiched into bags. Such bags are
used to package to bulk items, here specifically Rice. Non-woven Fabric are cov-
ered CTH 5603 as seen in the HSN Exlanatory Notes.

56.03 - Non-wovens, whether or not impregnated, coated, covered or
laminated.
- Of man-made filaments :
5603.11 -- Weighing not more than 25 g/m 2
5603.12 -- Weighing more than 25 g/m 2 but not more than 70 g/m 2
5603.13 -- Weighing more than 70 g/m 2 but not more than 150 g/m 2
5603.14 -- Weighing more than 150 g/m 2
- Other :
5603.91 -- Weighing not more than 25 g/m 2
5603.92 -- Weighing more than 25 g/m 2 but not more than 70 g/m 2
5603.93 -- Weighing more than 70 g/m 2 but not more than 150 g/m 2
5603.94 -- Weighing more than 150 g/m 2

A non-woven is a sheet or web of predominantly textile fibres oriented direc-
tionally or randomly and bonded. These fibres may be of natural or man-
made origin. They may be staple fibres (natural or man-made) or man-
made filaments or be formed in situ.
The applicant claims that the product is classifiable under CTH 6305. The rele-
vant chapter Note, headings, HSN Explanatory Notes are examined as under :

6305 SACKS AND BAGS, OF A KIND USED FOR THE PACKING
OF GOODS
6305 10 - Of jute or of other textile bast fibres of heading 5303 :
………………………………………..
6305 20 00 Of cotton
Of man-made textile material :
6305 32 00 -- Fexible intermediate bulk containers
6305 33 00 -- Other, of polyethylene or polypropylene stip or the like
6305 39 00 -- Other
6305 90 00 - Of other textile materials

GST LAW TIMES  26th March 2020  223