Classification of Polyester Bonded Fabrics and other Bonded Fabrics - CBEC Clarifies
CLASSIFICATION of polyester bonded fabrics is one among the many issues which is frequently disputed and litigated by Revenue as well as the industry.
Board has observed that the field formations were following divergent practices in these matters and also that the disputes in this regard are pending at various fora. This matter also came up for discussion in the Chief Commissioners Conference on Tariff and Allied Matters held on 29.10.2010 wherein it was resolved that Board should issue a suitable clarification.
After examining the various aspects, Board clarifies that bonded fabrics should be classified depending on types of textile materials and the nature of bondings by referring to the relevant Explanatory notes in Section XI of the Tariff and also the General Rules of Interpretation.
CBEC Circular No. 02/2011-Cus.,Dated: January 4, 2011