updates

RATE OF TAX ON ‘NON-WOVEN FABRIC IN CUT PIECES IN VARIOUS SIZES’ (IMPORTED AND INDIGENOUS) SOLD IN DELHI OR OUTSIDE DELHI

Date: 7^th June 2013

Assessee Submission: The product manufactured is ‘Non- woven fabric in cut pieces in various sizes (both imported and indigenous)’.It is  covered either by entry no. 84 (186) of Schedule III of the DVAT Act, 2004 under heading industrial inputs or by entry no. 164 of the Schedule III of the DVAT Act, 2004.

Departmental Representative (DR): referred to the entry 84 (186) which reads as under:

Entry no. 84- Industrial Inputs-

Sub-Entry 186

Textile Finishing agents. Textile Printing Binder-PVA Copolymer Textile Non-woven binder-PVA copolymer Lamination emulsion-PVA copolymer Packaging emulsion-PVA copolymer Sticker Emulsion-PVA copolymer Binder for water based paint-PVA copolymer

He submitted that item under determination is a non-woven fabric made by mechanically bonding a dry-laid staple fabric by water jet, which entangles the individual fibres, whereas the items included in the entry no. 84 (186) are finishing agents of Textile, thus the item under determination does not fall in the said entry.

He further stated that the tax invoice cum challan submitted by the applicant shows that the item under determination i.e. ‘Non- woven fabric in cut pieces in various sizes’ is imported under name ‘Spunlace Non-Woven Fabric’ with HSN Code 56039400. In this context, he referred to the entry no. 117 and 164 of Schedule III of DVAT Act, 2004. For convenience, both of the entries are reproduced below:-

Entry no. 117- Imported Textiles and Fabrics

Entry no. 164- All other varities of textile fabrics and made ups as are specifically not covered by any other entry of any of the Schedules to the Act.

The DR stated that the entry no. 117 is specifically for imported textiles and fabrics while the entry no. 164 of Schedule III is for textiles which are not covered by any other entry of the schedules to the said Act.

So, the item ‘Non- woven fabric in cut pieces in various sizes’ :

·         if it is imported then it is covered under entry no. 117 of Schedule III of the DVAT Act, 2004, and

·         in case it is manufactured indigenously, then the same is covered by entry no. 164 of Schedule III of the DVAT Act, 2004

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

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