Mega Flex Plastics Limited Loses GST Classification Dispute Over Polypropylene Leno Bags | Biz Flow Kit
The Calcutta High Court has dismissed the appeal submitted by Mega Flex Plastics Limited in a dispute concerning the GST classification of polypropylene leno bags used for packaging agricultural produce.
As per the company, its polypropylene leno bags must be categorised under HSN Code 6305 33 00 as textile products made from woven polypropylene strips. It cited that the bags are manufactured via a weaving process with the use of polypropylene tapes and are used in packing fruits and vegetables.
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The company put reliance on an earlier Advance Ruling Authority (AAR) order that had supported classification under the textile heading, subject to specific technical conditions.
The Court observed that the bags are manufactured from plastic granules and are recognised in the market as plastic sacks rather than textile sacks. The Bench referred to the earlier ruling in Raj Pack Well Ltd. and stated that woven polypropylene sacks are considered plastic products in common trade parlance.
The Court said that the Appellate Authority for Advance Ruling (AAAR) and the Single Judge had earlier concluded that the strips utilised by the company were not entitled to classification as synthetic textile material under the applicable tariff provisions.
Therefore, the Division Bench, including Justice Debangsu Basak and Justice Md. Shabbar Rashidi adhered to the earlier orders and dismissed the appeal, including all related applications dated May 19, 2026.
| Case Title | Mega Flex Plastics Limited & Anr. V/S The Union of India & Ors. |
| Case No. | MAT 364 OF 2023 With IA No.: CAN 1 of 2023 IA No.: CAN 2 of 2023 IA No.: CAN 5 of 2024 |
| Counsel For Appellant | Mr Vinay Kumar Shraff, Adv. Mr Rahul Dhanuka, Adv. Mr Dev Agarwal, Adv. Mr Niraj Baheti Adv. |
| Calcutta High Court | Read Order |
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