Association Of Technical Textiles Manufacturers And Processors & Anr. vs. Union Of INDIA & Ors.
Held
The Court held that the Tax Research Unit (TRU) lacked the authority to issue such a classification clarification. The circular also failed to consider relevant chapters and notes of the Customs Tariff Act, 1975, which distinguish between plastics and textiles.
Facts
The petitioners challenged a circular clarifying that polypropylene woven and non-woven bags fall under Chapter 39 of the Customs Tariff Act, 1975, as plastic bags. They argued these are textile materials classifiable under Chapter 56.
Key Issues
The primary issue was whether the TRU had the authority to issue the impugned circular. A secondary issue was the correct classification of polypropylene woven and non-woven bags under the Customs Tariff Act, 1975.
Sections Cited
Section 168
AI-generated summary — verify with the full judgment below
W.P. (C) 5933/2019 * IN THE HIGH COURT OF DELHI AT NEW DELHI
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Judgment reserved on: 13 October 2023 Judgment pronounced on: 16 November 2023
+ W.P.(C) 5933/2019 ASSOCIATION OF TECHNICAL TEXTILES MANUFACTURERS AND PROCESSORS & ANR. ..... Petitioners
Through: Mr. V. Lakshmikumaran and Mr. Kunal Kapoor, Advs.
versus
UNION OF INDIA & ORS.
..... Respondents Through: Ms. Shubhra Parashar, Mr. Virendra Pratap Singh Charak, Mr. Yash Hari Dixit, Mr. Pushpender Singh Charak and Mr. Jitendra Kumar Tripathi (GP), Advs. for UOI/R-1. Mr. Akash Vajpai and Ms. Shweta Shandilya, Advs. for R- 2 and R-3
CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE DHARMESH SHARMA
JUDGMENT
The writ petition has been preferred seeking the following reliefs:- “a) Issue a writ of certiorari, or any order or direction in the nature thereof, quashing paragraphs 7.1, 7.2, 7.3 and 7.4 of the Circular No. 80/54/2018-GST dated 31.12.2018 issued by the
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