The Gujarat AAR has ruled that PTFE braided gland packing — a rope-like braided cord made from pure polytetrafluoroethylene fibre yarn and used as stuffing-box packing in industrial pumps and valves — is correctly classified under HSN sub-heading 39209949 of Chapter 39 (Plastics and articles thereof) and attracts GST at 18%, rejecting the applicant's argument that the product should be treated as a textile technical article under HSN 59119090 at 5% GST. The ruling in M/s Sanghvi Products (GUJ/GAAR/R/2026/32, 07.08.2026) also reaffirms a key classification principle: the trade parlance test cannot displace the statutory tariff and HSN Notes unless those notes themselves are ambiguous.

The applicant manufactures the product by interlocking or cross-plaited braiding of pure PTFE fibre yarn on braiding machines into flexible packing of square or round cross-section ranging from 3mm to 25mm. The applicant had been classifying the product under HSN 39209949 and paying 18% GST but sought confirmation that Chapter 59, specifically Heading 5911 (Textile products and articles for technical uses), was the correct classification — noting that Note 8(a)(vi) to Chapter 59 expressly covers "cords, braids and the like... of a kind used in industry as packing or lubricating materials," and that other industry participants classify identical products under HSN 59119090 at 5% GST.

The AAR rejected the reclassification on a threshold ground that overrides all substantive arguments. Note 1(g) to Section XI of the Customs Tariff — which governs the entire textile chapters including Chapter 59 — excludes from Section XI any monofilament of plastics whose cross-sectional dimension exceeds 1mm, redirecting such goods to Chapter 39. The applicant's product has cross-sectional dimensions ranging from 3mm to 25mm, far exceeding the 1mm threshold. This single Note excludes the product from Section XI entirely, making Heading 5911 unavailable regardless of how closely the product matches the descriptive language in Chapter 59's notes about braids used in industry as packing materials.

The AAR further applied the Madhya Pradesh High Court's ruling in Raj Packwell Ltd. (1990) — which has been consistently applied in Gujarat advance rulings — confirming that products manufactured from plastic raw materials (here, PTFE granules classifiable under Heading 3904) are articles of plastic, not textile, even if the manufacturing process involves braiding or weaving on textile-type machinery. The AAR also specifically addressed the applicant's reliance on a competitor's classification under 59119090, applying the Supreme Court's 2026 ruling in Commissioner of Customs v. Welkin Foods: in the contemporary HSN-based classification regime, the trade parlance test is a last resort, applicable only where the statute including tariff headings, section notes, chapter notes and HSN explanatory notes does not provide clear criteria. Here the statutory criteria clearly point to Chapter 39. The product remains at 18% GST under Entry 121 of Schedule II of Notification No. 09/2025.

- 2026-juristway.com-2220-AAR(Gujarat)-GST  |  Authority for Advance Ruling, Gujarat | GUJ/GAAR/R/2026/32  |  07.08.2026