Classification of goods—  The present appeal has been filed  against the Advance Ruling order.

The main issue here is to decide the classification of the product viz. Poly Propylene Non-Woven Bags manufactured from intermediate product i.e. Poly Propylene Non-Woven fabrics which in turn is manufactured from Fiber grade poly propylene granules by adopting the Spun Bond technology.

The appellant in its submission stated that they are engaged in manufacturing of non-woven bags through the intermediate product non-woven fabrics manufactured from fiber grade polypropylene granules by adopting Spun Bond technology in which polypropylene granules are passed through extruder at certain temperature, the melted material is converted into single filament after passing through spinning unit. Then, these filaments are laid on continuous web under control pressure thermal bonding resulting in non-woven fabric and the said intermediate product “poly propylene non-woven fabrics” is classifiable under Chapter Heading 5603 and subsequently Poly Propylene Non-woven Bags is classifiable under Chapter Heading 6305 of Customs Tariff Act, 1975.

The lower authority held that Poly Propylene Non-Woven bag is classifiable under CTH 3923.

In the present case, Non-woven bags are made from polypropylene granules which is also a type of plastics made from polymerization of propylene. As mentioned in General Notes to Chapter Heading 39 of Custom Tariff Act, 1975, Plastics include materials which are capable of polymerization at some stage and therefore, in view of findings of Madhya Pradesh High Court, fabric made from polypropylene, by no stretch of imagination construed as textile but merits classification as plastic or article of plastic under Chapter Heading No. 3923.

Held that— The product in question viz. Polypropylene Non-woven bags merits classification under Chapter Heading 3923 of the HSN/Customs Tariff Act, 1975.