2026-VIL-509-CAL
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SGST High Court Cases

GST - Classification of Polypropylene Leno Bags – Appellant had voluntarily declared its products under Tariff Heading 3923 2900 and availed duty Drawback benefits prior to the introduction of GST – Appellant sought Advance Ruling seeking reclassification of the same products under Tariff Heading 6305 33 00, contending that the bags are manufactured through weaving of polypropylene strips and should be classified as synthetic textile products – The AAR order held that the polypropylene leno bags manufactured by the appellant can be classified under the Chapter Heading 6305 33 00 – The AAAR set aside the order passed by the AAR. The Writ Court had dismissed the challenge to AAAR Order - Whether polypropylene leno bags manufactured from plastic granules through a weaving process can be classified as textile products under tariff heading 6305 33 00 instead of the plastic bag classification under heading 3923 2900 – HELD - The appellant is entitled to seek reclassification notwithstanding its earlier voluntary disclosure under 3923 2900 and obtaining duty drawback on the basis of such classification. However, the bags cannot be classified as textile products. The raw materials used are plastic granules, which per se cannot be termed as textile products. To qualify as synthetic textile, the strips used for weaving must meet specific parameters of cross-sectional diameter and deniers, which the strips used by the manufacturer do not satisfy as concurrently held by the Appellate AAR and the Ld. Single Judge. Furthermore, the bags are commonly known in the market as plastic sacks and not as synthetic textile or textile sacks – The appeal is dismissed
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GSTAT Appeal filed wrongly...
By CA Vivek Jalan

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