PVC tufted coir carpet/mat is classified under Tariff Heading 5703 90 90 and its liable to GST at the rate of 12%
Appellate Authority for Advance Ruling — Classification and Taxability on Coir Mats/flooring with Vinyl (PVC) backing – The appellant is planning the manufacture and export of Coir Mats/flooring with Vinyl (PVC) backing (impugned products). The applicant sought an advance ruling as to whether the process of manufacture (embedding coir yarn in to vinyl (PVC) compound and curing by heating / cooling) is “Tufting” or a process “other than those processes mentioned in Heading 5701 to 5704” of the Customs Tariff and HSN Explanatory Notes to Chapter 57; whether “coir mats/ matting/ floor covering with vinyl (PVC) backing” manufactured by the process of embedding coir yarn into vinyl (PVC) compound and curing by heating / cooling is rightly covered under the description “coir mats matting and floor covering”; whether “coir mats / matting / floor covering with vinyl (PVC) baking” manufactured by the process of embedding coir yarn into vinyl (PVC) compound and curing by heating / cooling would merit classification under the heading 5705 (more specifically under CTH 5705 00 49) of Chapter 57 of the 1st Schedule to the Customs Tariff. The AAR held that manufacture of PVC Tufted Coir Mats / Matting / Floor coverings by the process of embedding coir yarn into PVC cannot be considered as textile floor coverings of coir covered under HSN 5702,5703 or 5705. The process undertaken is a tufting process, it will come under the Customs Tariff Head 5703 90 90 and is liable to GST at the rate of 12% as per Entry at Sl.No. 144 of Schedule of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017; PVC Tufted Coir Mats and Matting cannot be considered as coir mats, matting and floor coverings covered under HSN 5702 or 5705 and is appropriately classifiable under HSN 5703 90 90 as tufted mats/matting floor covering of coir; and the PVC Tufted Coir mats/matting /floor covering are classifiable under Customs Tariff Heading 5703 90 90 and attracts GST at the rate of 12% as per Sl.No. 144 of Schedule II of the Notification. Aggrieved by the said ruling, the appellant preferred appeal
Held that:- The Hon’ble Appellate Authority for Advance Ruling held that the PVC tufted coir carpet/mat is classified under Tariff Heading 5703 90 90 and is liable to GST at the rate of 12% as per Sl.No. 144 of Schedule II of Notification No. 01/2017-CT (Rate) dated 28-06-2017 as amended. Thus, upheld the decision of the AAR and rejected the appeal.
PVC tufted coir carpet/mat is classified under Tariff Heading 5703 90 90 and its liable to GST at the rate of 12%
Appellate Authority for Advance Ruling — Classification and Taxability on Coir Mats/flooring with Vinyl (PVC) backing – The appellant is planning the manufacture and export of Coir Mats/flooring with Vinyl (PVC) backing (impugned products). The applicant sought an advance ruling as to whether the process of manufacture (embedding coir yarn in to vinyl (PVC) compound and curing by heating / cooling) is “Tufting” or a process “other than those processes mentioned in Heading 5701 to 5704” of the Customs Tariff and HSN Explanatory Notes to Chapter 57; whether “coir mats/ matting/ floor covering with vinyl (PVC) backing” manufactured by the process of embedding coir yarn into vinyl (PVC) compound and curing by heating / cooling is rightly covered under the description “coir mats matting and floor covering”; whether “coir mats / matting / floor covering with vinyl (PVC) baking” manufactured by the process of embedding coir yarn into vinyl (PVC) compound and curing by heating / cooling would merit classification under the heading 5705 (more specifically under CTH 5705 00 49) of Chapter 57 of the 1st Schedule to the Customs Tariff. The AAR held that manufacture of PVC Tufted Coir Mats / Matting / Floor coverings by the process of embedding coir yarn into PVC cannot be considered as textile floor coverings of coir covered under HSN 5702,5703 or 5705. The process undertaken is a tufting process, it will come under the Customs Tariff Head 5703 90 90 and is liable to GST at the rate of 12% as per Entry at Sl.No. 144 of Schedule of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017; PVC Tufted Coir Mats and Matting cannot be considered as coir mats, matting and floor coverings covered under HSN 5702 or 5705 and is appropriately classifiable under HSN 5703 90 90 as tufted mats/matting floor covering of coir; and the PVC Tufted Coir mats/matting /floor covering are classifiable under Customs Tariff Heading 5703 90 90 and attracts GST at the rate of 12% as per Sl.No. 144 of Schedule II of the Notification. Aggrieved by the said ruling, the appellant preferred appeal
Held that:- The Hon’ble Appellate Authority for Advance Ruling held that the PVC tufted coir carpet/mat is classified under Tariff Heading 5703 90 90 and is liable to GST at the rate of 12% as per Sl.No. 144 of Schedule II of Notification No. 01/2017-CT (Rate) dated 28-06-2017 as amended. Thus, upheld the decision of the AAR and rejected the appeal.