A ruling has been passed by the Appellate Authority of Advance Ruling (AAAR), West Bengal and it states that the fusible interlining cloth can’t be considered as a woven fabric thus it will attract 12% GST Rates 
The ruling came in an appeal where M/s. Sadguru Seva Paridhan Pvt. Ltd. is in the business of manufacturing a fusible interlining cloth. The said item was classified under Chapters 52 to 55, as clarified under Circular No. 5/89 dated 15/06/1989 before 1989. In the Union Budget 1989-90, chapter note 2(c) was added in Chapter 59 of traffic which included the textile fabric or more specific discreetly coated with plastic by printing process under heading 5903. In the Union budget 1995, the same was removed with effect from March 16, 1995.
The appellant claim that when the chapter note itself has been removed then the item cannot come under Heading 5903. He also represented some invoices where the item is being classified under sub-heading 5208. The Applicant also referred to a similar case of Goodwear Fashion Pvt. Ltd. where Authority of Advance Ruling (AAR) 
The AAAR WB said that the claim doesn’t hold good and the clause (4) of chapter 59 is not applicable to fusible interlining cloth, manufactured by the applicant. So it is clear that the product can be considered under sub-heading 5903 of the Tariff as its product merits classification.
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The Rule has been passed by the appellate authority consisting of members Devi Prasad Karanam and A.P.S. Suri, and in the ruling, they said that “fusible interlining cloth is not a woven fabric and falls under HSN 5903, so 12% Goods and Service Tax (GST) is applicable”.
