Page 130 - GSTL_26th March 2020_Vol 34_Part 4

640 GST LAW TIMES [ Vol. 34
end threaded to secure a screw type closure, the portion
below the threaded end being intended to be expanded
to a desired size and shape.
(b) Spools, cops, bobbins and similar supports, including video or
audio cassettes without magnetic tape.
(c) Stoppers, lids, caps and other closures.
The heading excludes, inter alia, household articles such as dustbins, and
cups which are used as tableware or toilet articles and do not have the
character of containers for the packing or conveyance of goods, whether or
not sometimes used for such purposes (heading 39.24), containers of heading
42.02 and flexible intermediate bulk containers of heading 63.05.
5.6 It is clear from Chapter Note 1 to Chapter 39 that ‘The expression,
however, does not apply to materials regarded as textile materials of Section XI. There-
fore, plastics under Chapter 39 does not cover Non-woven textile materials of
CTH 5603 of which the articles in hand are made of. Further, as per para 7.5 of
the C.B.I. & C. clarification above, Non-laminated woven bags are to be classified
as per the constituting material. There is no dispute that the raw material used by
the applicant is a textile material classified under CTH 5603 as seen from the
Purchase Invoice furnished by the applicant. The applicant manufactures non-
woven fabric bags from the fabric roles classified under ‘5603’ and is used mainly
for packing rice and food products for storage and sale. Thus applying the Ex-
planation of HSN to Heading 6305, given above, the product is classifiable under
Chapter Heading 6305 33 00.
6.1 Having decided the classification, the next issue to be decided is the
applicable rate. The applicant has stated that their product non-woven fabric bag
falls below Rs. 1,000/- per piece. The description of the goods stood mentioned
at S. No. 224 of Schedule-I of Notification No. 1/2017-C.T. (Rate), dated 28-6-2017
up to 30-9-2019 and therefore, the applicable rate of CGST is 2.5% and SGST is
2.5% upto 30-9-2019. Notification No. 14/2019-C.T. (Rate), dated 30-9-2019,
amended the Notification No. 1/2017-C.T. (Rate), dated 28-6-2017 wherein the
entry at S. No. 224 of Schedule-I was amended to the effect that the said entry do
not cover the goods of 6305 32 00, 6305 33 00, 6309 and further a new entry 80AA
inserted in the Schedule-II of the Notification No. 1/2017-C.T. (Rate), dated 28-6-
2017, which is as below :

“80AA 3923 Woven and non-woven bags and sacks of polyethylene or
or polypropylene strips or the like, whether or not laminated,
6305 of a kind used for packing of goods”;

Therefore, the rate of product in hand is 6% CGST and 6% SGST effective from
30-9-2019. Further, Notification No. 27/2019-C.T. (Rate), dated 30-12-2019
amended the Notification No. 1/2017-C.T. (Rate), dated 28-6-2017 wherein the
entry at 80AA in the Schedule-II of the Notification was omitted and a new entry
163B inserted in Schedule-III of the Notification, which is as below :
in Schedule-III - 9%, after Serial Number 163A and the entries relating
thereto, the following serial numbers and entries shall be inserted, namely :-

“163B 3923 Woven and non-woven bags and sacks of polyethylene or
or polypropylene strips or the like, whether or not laminated,
6305 of a kind used for packing of goods;

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