Appellate Authority for Advance Ruling — Taxability on fusible interlining cloth – The applicant, a manufacturer of fusible interlining cloth, sought an advance ruling on whether the item is classifiable in Chapters 50 to 55 of the First Schedule of the Customs Tariff Act, 1975 or under Heading 5903 of the Tariff Act. The WBAAR, in its ruling held that fusible interlining cloth is classifiable under sub-heading 5903 of Tariff Act. The Appellant has filed the Appeal against the above Advance Ruling with the prayer to set aside / modify the said impugned ruling on the ground (i) the AAR ignored the test report, which established that the goods in question bear clotted pattern and are partially coated with polythene (ii) the AAR ignored the judgment in the case of Goodswear Fashion Pvt. Ltd., [2019] 08 TAXLOK.COM 082 (AAR-Uttarakhand) (iii) the AAR misread Circular No. 24/Coated Fabric/88-CX.1 dated 02.09.1988, wherein at paragraphs 8 and 9, it has been stated unambiguously that fabrics partially coated or partially covered with plastic and bearing designs were excluded from purview of Heading 59.03.
Held that:- The Hon’ble Appellate Authority for Advance Ruling held that the appellant relied upon the decision of Goodswear Fashion Pvt. Ltd., [2019] 08 TAXLOK.COM 082 (AAR-Uttarakhand). On perusal of the decision of the AAR, Uttarakhand, it is seen that it has not taken into account the relevant circulars of CBEC relating to ‘Classification of fusible interlining cloth and hence it cannot be said to reflect the true legal position on this issue. Accordingly, find no merit in the instant appeal and dismissed the appeal.—Sadguru Seva Paridhan Pvt. Ltd., In Re… [2020] 22 TAXLOK.COM 125 (AAAR-WB)