SMVD POLYPACK PVT LTD

The Applicant is a manufacturer of Polypropylene Leno Bags (or mesh bags) which is mainly used for packing of agricultural produce such as, potato and onion.

The Applicant sought Advance Ruling on "Classification of Polypropylene Leno Bags under the CGST/WBGST Acts, 2017"

Tariff Sub Heading 39232990 under the GST Tariff covers articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics, namely, sacks and bags (including cones) made of plastics other than polymers of ethylene but not of poly (vinyl chloride).

Tariff Sub Heading 63053300 under the GST Tariff covers sacks and bags, of a kind used for packing of goods, made, not of jute or of other textile bust fibres of Heading 5303, but of man-made textile materials which are not flexible intermediate bulk containers but are of polyethylene or polypropylene strip or the like.

Note 1(g) to Section XI of the Tariff Act states that the Section of Textile and Textile Articles covering Chapters 50 to 63 does not include, “Monofilament of which any cross-sectional dimension exceeds 1 mm or strip or the like (for example, artificial straw) of an apparent width exceeding 5 mm, of plastics (chapter 39), or plaits or fabrics or other basket-ware or wickerwork of such monofilament or strip (chapter 46)”

Note 1 (h) to Section XI of the Tariff Act which states that the Section of Textile and Textile Articles covering Chapters 50 to 63 does not include, “Woven, knitted or crocheted fabrics, felt or nonwovens, impregnated, coated, covered or laminated with plastics, or articles thereof, of chapter 39”

The Application submits that the Applicant manufactures PP Leno Bags with tapes not exceeding 5mm and the same are not impregnated, coated, covered or laminated with particles and articles thereof, of Chapter 39, therefore classified under Tariff Sub Heading 63053300.

CRUX: "Leno Bags‟, as declared by them to be made from woven Polypropylene fabric using strips or the like of width not exceeding 5 mm and without any impregnation, coating, covering, or lamination with plastics, are to be classified under Tariff Sub Heading 63053300.