Page 119 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : GLOBAL TEXTILE ALLIANCE INDIA PVT. LTD. 45
through godets. Then it is wound on paper cone to get the final
bobbin weighing around 4 Kg., which will be subject to testing for
all properties and the required norms. Then it will be graded and
packed in boxes and exported. This yarn is captively used in the
manufacture of fabric also.
2.3 The applicant referring the General Rules for Interpretation of Im-
port Tariff has interpreted the goods merits classification as under :
Knitted Fabric : It is not impregnated, coated, covered or laminated tex-
tile fabrics and it will not fall under CH 5903, as per Chapter Note 2 as
well as under 5907 as per Chapter Note No. 5 of Chapter 59. The correct
classification is under Chapter 60 only. Therefore, it will attract 5% GST
as per Sl. No. 221 of Schedule I of Notification No. 1/2017-C.T. (R)
Woven Fabrics : It will fall under 5407 and attracts 5% GST as per Sl. No.
217 Schedule I of Notification No. 1/2017-C.T. (Rate), dated 28-7-2017 as
amended.
Woven fabric bonded with Non-woven fabric : The final product consists
of two textile material i.e., woven fabric and non-woven fabric, the goods
sold in market is woven fabric as it is the base material. Hence the correct
classification is 5407, as it is the most specific entry and it will attract 5%
as per Sl. No. 217 of Schedule I of Notification No. 1/2017-C.T. (Rate),
dated 28-6-2017 as amended.
Covers for (a) Pillow, (b) Latex Block and, (c) Mattress : These goods are
nothing but made ups. As per Note 7 of Section XI Textile and Textile
Article of the Customs Tariff Act, 1975, “made up means goods cut oth-
erwise than into square or rectangles, produces in finished state, ready
for use. Hence the goods are classifiable under CH 6304 and will attract
5% GST as per Sl. No. 224 of Schedule-I of Notification No. 1/2017-C.T.
(R) in case if Selling price is less than Rs. 1000/- and will attract 12% GST
if selling price is more than Rs. 1000/- as per Sl. No. 171 of Schedule-II of
Notification No. 1/2017-C.T. (R)
Foot Runner & Pillow Sheet : These goods are also made up goods. They
are classifiable under CH 6302 and will attract 5% GST as per Sl. No. 224
of Schedule-I of Notification No. 1/2017-C.T. (R) in case if Selling price is
less than Rs. 1000/- and will attract 12% GST if selling price is more than
Rs. 1000/- as per Sl. No. 171 of Schedule-II of Notification No. 1/2017-
C.T. (R).
Chenille Yarn : This yarn is classifiable under Chapter 5606 of Customs
Tariff Act, 1975. Hence it will attract 12% GST as per Sl. No. 138 of
Schedule-II of Notification No. 1/2017-C.T. (R), dated 28-6-2017 as
amended.
Poly Propylene Extrusion Yarn, Polypropylene Texturized Yarn & Pol-
yester Texturized Yarn : These goods are classifiable under CH 5402 and
it will attract GST at 12% as per Sl. No. 132B of Schedule-II of Notifica-
tion No. 1/2017-C.T. (R), dated 28-6-2017 as amended.
3.1 The applicant was given an opportunity to be personally heard on
10-4-2019. The authorized representative of the applicant appeared and stated
that they export and also locally supply yarn, fabrics both knitted and woven
and also made up articles such as covers for pillow, latex block, mattress, foot &

GST LAW TIMES  6th August 2020  119