Authority for Advance Ruling –Classification of PP Leno Bag -–- The petitioner challenged the legality of the impugned order dated 25th October, 2018 passed by the AAAR. The Petitioner, a manufacturer of Polypropylene Leno Bags by weaving polypropylene strips (tapes), sought an Advance ruling on classification of PP Leno Bag under Chapter Heading 63053300 of the said Tariff. The AAR vide its order dated July 6, 2018, held that the PP Leno Bags being manufactured by the petitioner can be classified under Chapter Heading 63053300. The Respondent no. 3 preferred an appeal before the AAAR, which was allowed. The CBIC issued Circular No. 80/54/2018-GST dated December 12, 2018 clarifying that Polypropylene Woven and Non-woven Bags and PP Woven and Non-woven Bags laminated with BOPP would be classified as plastic bags under HS Code 3923 and would attract 18% GST. The court observed that they are not inclined to grant any relief because no further appeal is provided for or against the impugned order of the Appellate Authority for Advance Ruling. The scope of interference under the jurisdiction under Article 226 of the Constitution of India cannot be enlarged and the findings of the Appellate Authority cannot be substituted unless the same is without jurisdiction or there is violation of principle of natural justice or the order is patently contrary to any specific provision of law. Before the introduction of GST regime, petitioner had been declaring the said product under the Chapter 3923 29 90 of the Central Excise Tariff Act, 1985, and enjoyed the Duty Drawback and never contended before the authority till the introduction of GST law that its classification was wrong. As the HDPE strips or tapes fall under the Heading 39.20, subheading 3920.32 of the Central Excise Tariff Act and not under Heading 6305 33 00, order of the Appellate authority rejecting the claim of the petitioner is justifiable in law. The view that the product manufactured is made from plastic granules and cannot be treated as textile articles, has been held by the Hon’ble Madhya Pradesh High Court in case of Raj Pack Well Ltd. as well as it has been uniformly adopted by the Appellate Authority for Advance Ruling in several States.

Held that:- The Hon’ble High Court dismissed the petition.