The product Non Woven Bags manufactured through the intermediate product Non Woven plastic material manufactured from Fibre grade poly propylene granules merit classification under Heading No. 3923.
Classification of goods— In the instant case, the applicant is engaged in manufacturing of Non woven Bags through the intermediate product Non Woven Fabrics manufactured from Fibre grade poly propylene granules by adopting the Spun Bond technology. In this technology, polypropylene granules are fed to the hopper and passed through extruder at certain temperature. The melted material after filtering passes through the spinning unit to obtain a continuous single filament. The said filaments are then subject to lying on continuous web and under control pressure thermal bonding. The resultant product is non Woven fabrics, which is called Polypropylene Non Woven Fabric. The issue for decision before us is the classification i.e. HSN code and appropriate Rate of Tax for Nonwoven Polypropylene Bags manufactured by the applicant.
Held that— we conclude that Non-Woven Bags manufactured through the intermediate product, i.e. Non-Woven fabric manufactured from Fiber grade poly propylene granules by adopting the Spun Bond technology, merits classification under HS code 3923 and would attract 18% GST, as also clarified by the CBIC in the Board Circular No.80/54/2018-GST issued from F. No. 354/432/2018-TRU dated 31st December, 2018