PP Leno Bags to be classified under Tariff Sub Heading 39232990: AAAR

PP Leno Bags to be classified under Tariff Sub Heading 39232990: AAAR |The ruling prononced by the AAR have been set aside and it is ordered that Polypropylene Leno Bags manufactured by the respondents be classified under Tariff Heading 39232990 byAppellate Authority for Advance Ruling in matter ofRLJ Woven Sacks Pvt. Ltd. Earlier the Authority of Advance Ruling West Bengal has ruled out that PP Leno Bags, if specifically made from woven Polypropylene fabric using strips or the like of width not exceeding 5 mm and without any impregnation, coating, covering, or lamination with plastics, are to be classified under Tariff Sub Heading 63053300.

PP Leno Bags to be classified under Tariff Sub Heading 39232990: AAAR

Below is the Extract of Advance Ruling 11. The West Bengal Authority for Advance Ruling failed to take note of the aforesaid judgment of the Hon'ble Madhya Pradesh High Court which is squarely applicable in the instant case. Further, since the Respondent declared that Polypropylene Leno Bags manufactured by weaving polypropylene strips (tapes) under Tariff Heading 3923 29 90 for claiming duty drawback, and no explanation could be offered as to why the Tariff Heading should be changed now to 6305 33 00, it is not permissible under the doctrine of equitable estoppels that the Respondent is allowed to take such a divergent stand now. The Apex Court has consistently struck down such self-serving attitude as held in The Rajasthan State Industrial Development and Investment Corporation Ltd. and Anr. vs. Diamond and Gem Development Corporation Ltd. and Anr., AIR 2013 SC 1241. 12. In view of the above discussion, we set aside the Advance Ruling No. 09/WBAAR/2018-19 dated 06.07.2018 pronounced by the West Bengal Authority for Advance Ruling in the matter of M/ s Mega Flex Plastics Ltd., and order that the item Polypropylene Leno Bags (PP Leno Bags) manufactured by the respondent, be classified under Tariff Heading 3923 29 90. The Appeal filed by the Assistant Commissioner, CGST & CX, Division, Howrah Commissionerate thus succeeds and is allowed. The instant appeal stands disposed of accordingly. Send a copy of this order to the Appellant and the Respondent tor information.