Page 131 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : GLOBAL TEXTILE ALLIANCE INDIA PVT. LTD. 57
The Product under consideration is a special yarn made from core and pile yarn
and made in a similar fashion as explained in the HSN and therefore, the chenille
yarn made of Polyester is classifiable under CTH 5606 00 20.
The applicable rate of CGST is 6% as per Sl. No. 138 of Schedule II of No-
tification 1/2017-C.T. (R), dated 28-6-2017 as amended and SGST-6% as per S.
No. 138 of Schedule II of Notification No. II(2)/CTR/532(d-4)/2017 vide G.O.
(Ms) No. 62, dated 29-6-2017.
7.7 Poly Propylene Extrusion Yarn : The raw material Polypropylene
white chips and colored Poly Propylene granules are procured from outside and
fed into extrusion machine through colortronics system in the required ratio. The
chips and granules are churned, grinded and melted in screw and barrel and the
melt will be metered through pump to get the required denier and will be
squeezed out in filament from packs. After certain process, the yarn is wound on
a paper cone which will be subject to testing and is captively used for manufac-
ture of fabric. The applicant has stated that they may go for commercial sales.
The test report furnished by the Applicant No. 304/2019-20 states the description
of the yarn as ‘100% Poly Propylene Filament Yarn’ falling under HS Code 5402.
Poly Propylene Texturized Yarn : The raw material Polypropylene fully
drawn yarn will be creeled on trolley, which will be threading to the godets
through water jets, where water treatment is given and through air, where air jet
is blown at 10 kg./cm . Again threading to godets is carried out and then wound
2
on paper cone. After testing packed in boxes for export and is also captively
used. The test report No. 305/2019-20 describes the product as ‘100% Poly Pro-
pylene Filament Yarn (Textured)’ falling under HS Code 5402.
Polyester Texturized Yarn : The raw material polyester partially Orient-
ed yarn from outside is creeled on trolley, which will be threading to the godets
through water jets, where water treatment is given and through air, where air jet
is blown at 10 kg/cm . Again, threading to godets is carried out and then wound
2
on paper cone. After testing packed in boxes for export and is also captively
used. The test report No. 306/2019-20 describes the product as ‘100% Polyester
Filament Yarn (Textured)’ falling under HS Code 5402.
All the three yarns above are synthetic yarns and are clearly classifiable
under CTH 5402 when not put up for retail sale and under CTH 5406 when put
up for retail sale. For ease of reference, the relevant tariff entries are given below :

5402 SYNTHETIC FILAMENT YARN (OTHER THAN
SEWING THREAD), NOT PUT UP FOR RETAIL SALE,
INCLUDING SYNTHETIC MONOFILAMENT OF LESS
THAN 67 DECITEX
…………… …. ……………………………………………………………………
- Textured yarn :
5402 31 00 -- Of nylon or other polyamides, measuring per single yarn
not more than 50 tex
5402 32 00 -- Of nylon or other polyamides, measuring per single yarn
more than 50 tex
5402 33 00 -- Of polyesters
5402 34 00 -- Of polypropylene
5402 39 -- Other :
GST LAW TIMES  6th August 2020  131