Case Details: Dollar Industries Ltd. (2025) 33 Centax 325 (App. A.A.R. - GST - W.B.)
Judiciary and Counsel Details
- Shri Shrawan Kumar & Dr Uma Sankar S., Members
- S/Shri Nitin Kumar Pasari, Shubham Choudhary & Akshat Agarwal, Advs. for the Appellant
Facts of the Case
The appellant, engaged in the manufacture and supply of raincoats primarily composed of polyvinyl chloride (PVC), had sought an advance ruling on the classification of such products. The Authority for Advance Ruling (AAR) held that the supply of PVC raincoats was covered under HSN Code 3926 as ‘other articles of plastics’ and was taxable at 18% in terms of entry no. 111 of Schedule III of Notification No. 1/2017, dated 28-06-2017. The appellant contended that raincoats are specifically covered under Chapter 62 of the HSN, which deals with articles of apparel and clothing accessories, and therefore classification should be under HSN Code 6201. Aggrieved by the ruling, the appellant preferred an appeal before the Appellate Authority for Advance Ruling (AAAR), West Bengal.
AAAR Held
The AAAR held that classification under GST is determined strictly in accordance with the Harmonized System of Nomenclature (HSN) and that Chapters 39 and 62 are mutually exclusive in their coverage. It observed that PVC raincoats are made by sealing sheets of plastics and therefore constitute articles of plastics falling under HSN Code 3926, and not garments or apparel under HSN Code 6201. The authority further held that although raincoats are generally covered under Chapter 62 when made of textile materials, plastic raincoats primarily composed of PVC cannot be treated as garments of textiles. Consequently, it was held that the supply of PVC raincoats is classifiable under HSN Code 3926 and taxable at 18% under entry no. 111 of Schedule III of Notification No. 1/2017, dated 28-06-2017.
List of Case Reviewed
- Dollar Industries Ltd. —(2025) 29 Centax 199 / [2025] 173 taxmann.com 407 (AAR – West Bengal) — Affirmed [Para 32]
List of Case Cited
- CCE v. India Waterproofing & Dyeing Works — 1996 (87) E.L.T. 340 (S.C.) — Referred [Para 9]
- CCE v. Uni Products India Ltd. — 2020 (372) E.L.T. 465 (S.C.) — Referred [Para 9]
- CCE v. Vicco Laboratories —2005 (179) E.L.T. 17 (S.C.) — Referred [Para 9]
- CCE v. Wockhardt Life Sciences Ltd. — 2012 (277) E.L.T. 299 (S.C.) — Referred [Para 9]
- CCE v. Wood Craft Products Ltd. — 1995 (77) E.L.T. 23 (S.C.) — Referred [Para 9]
- Commercial Tax Officer v. Binani Cements Ltd. — [2014] 42 taxmann.com 529/44 GST 103 (SC) — Referred [Para 9]
- Porritts & Spencer (Asia) Ltd. v. State of Haryana — 1983 (13) E.L.T. 1607 (S.C.) — Referred [Para 9]
