The Gujarat Authority of Advance Ruling (AAR) held that 12% GST payable on Fusible Interlining Cloth.
The applicant, M/s. Supercoat India submitted that it supplies partially coated Polyester fabric (knitted or woven) or any other kind of partially coated (with scattered micro-dot print) Fabric covered under chapter heading 50 to 55, 58, or 60. The goods supplied are further used as interlining fabric in products like shirts, suits, coats, Gowns, etc.
The applicant has sought the advance ruling on the issue of whether the Partially Coated Polyester Fabric (Knitted or Woven) or any other partially coated Fabric will be covered under relevant chapter headings (50 to 55, 58, or 60) or under Tariff Heading 5903.
The Coram of Arun Saxena and Arun Richard noted that the fabric is coated with plastics and the fabric is not tire cord fabric, the goods can be bent manually. The fabric is partially coated on one side and the dots are elevated in a manner that the fabric can be attached to another fabric and used for interlining. The use of the subject goods is that it is used as interlining fabric in various products.
The AAR ruled that the goods are used as interlining fabric wherein the dots on the fabric are elevated in a manner that the fabric can be attached to another fabric which is used for interlining, by applying heat and pressure for a certain time. Thus the spattered dots are thermoplastic material capable of providing a bond to other fabrics/materials on the application of heat and pressure.
“We note that the applicant has relied on cited AAR and AAAR Rulings. We have perused the cited Rulings and find that in few AAR Rulings, such as in M/s Sadguru Seva Paridhan Pvt ltd, the fusible interlining cloth was classified at Heading 5903; in both the cases of M/s Ruby Mills and M/s Ashima Dyecot it was Ruled that fusible interlining fabric of cotton is classified at Heading 5903. However, even though few Rulings cited by the applicant classify fusible interlining cloth at Heading 5903, we do not delve into these Rulings as we hold that as per Section 103 of the CGST Act, any Advance Ruling is binding only on the Applicant who has sought it and on the concerned officer or the jurisdictional officer in respect of the Applicant,” the AAR added.
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