2018 (8) TMI 393 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (15) G. S. T. L. 614 (App. A. A. R. – GST) – Classification of product, “SIKA Block Joining Mortar” under Tariff Heading 3214 90 90 – whether 'SIKA Block Joining Mortar' manufactured and marketed by the Appellant, is to be classified under Tariff Head 3214 90 10, which the Appellant was declaring voluntarily for the past few years and which the WBAAR held as 3214 90 90 to be the correct classification or Tariff Head 3824 50 90, which the Appellant now insists is the correct classification? – Challenge to Advance Ruling.
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Held that:- It is clear that the 'SIKA Block Joining Mortar' is non-refractory and that it is not used for preparation of surfaces – Considering the nature, use and commercial identity of the item in question and, notwithstanding the Appellant's earlier voluntary declaration about the classification of the item, its classification is to be accepted under Tariff Item 3214 instead, it is
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ts used in building construction. One such product is manufactured and marketed by it under the brand name of SIKA Block Joining Mortar and is said to be used for joining masonry units like AAC blocks, Concrete blocks, fly ash bricks, etc. The Appellant had approached the West Bengal Authority for Advance Ruling for determining the proper classification of SIKA Block Joining Mortar . The West Bengal Authority for Advance Ruling (hereinafter referred to as WBAAR ) after hearing the matter and examining the documents, vide its Ruling dated 09.04.2018, decided that: SIKA Block Joining Mortar' is to be classified under tariff item 3214 90 90 of the Customs Tariff Act, 1975, and, therefore, taxable under Serial no. 24 of Schedule IV vide Notification No. 01/2017-Central Tax (Rate) dated 28/06/2017 under CGST Act, 2017 and 1125-FT dated 28/06/2017 under WBGST Act, 2017 It is against this Ruling that the Appellant has filed the instant appeal under Section 100(1) of the West Bengal Goods
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e Appellant relied on the order of the Commissioner of Sales Tax, West Bengal, passed in case no. 24X/PRO/VAT/16/303 in the matter of M/S UAL Industries Ltd. where the Commissioner of Sales Tax, West Bengal, finds 'dry mix mortar', made by mixing sand, fly ash, OPC/PPC Cement, hydrated lime and polymer additives. b. The Appellant argued that as per common parlance the product is classifiable as mortar under Tariff Heading 3824 50 90 citing the following judgements: i. Porritts & Spencer (Asia) Ltd. Vs. State of Haryana [1983(13) ELT of 607 (SC) ii. Asian Paints India Ltd v. Collector of Central Excise [1998 taxmann.com 6(SC)] iii. Plasmac Machine Manufacturing Co. (P) Ltd v. Collector of Central Excise [1991 taxmann.com 6 (SC)] iv. Dabur Industries Ltd vs. CCE [2005] 4 SCC 9, v. Commissioner of Central Excise v. Wockhardt Life Sciences Ltd (2012) 5 SCC 585. c. By citing the judgement of Morocco (India) Ltd vs. Collector of Customs, Madras [1997(91) ELT 126 (Tribunal)] &
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keted by the Appellant, is to be classified under Tariff Head 3214 90 10, which the Appellant was declaring voluntarily for the past few years and which the WBAAR held as 3214 90 90 to be the correct classification or Tariff Head 3824 50 90, which the Appellant now insists is the correct classification. 5. The Appellant admitted that it had earlier classified their product 'SIKA Block Joining Mortar' under Tariff Head out of ignorance and it made no difference as the duty/tax payable under both the heads, that is Tariff Head 3214 90 10 and Tariff Head 3824 50 90, was the same. Under the GST Act, however, there is a difference of 10 % which is pushing them out of market as its competitors are supplying the similar products charging lower tax. Following is the comparison of duty/tax in pre- and post- GST regime: Tariff Heading Duty (Prior to GST) Tax Rate under GST 38245090 Excise: 12.5%, VAT: 14.5% 18% 32149010 Excise: 12.5%, VAT: 14.5% 28% 6. The Appellant submitted that 'S
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#39; putty, grafting putty, resin cements, caulking compounds and other mastics; painters' fillings 3214.90 Other 3214.90.10 Non-refractory surfacing preparations 3214.90.20 Resin cement 3214.90.90 Other 3824 Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included. 3824.10 Prepared binders for foundry moulds or cores 3824.10.00 Prepared binders for foundry moulds or cores 3824.30 Non-agglomerated metal carbides Mixed together or with metallic binders 3824.30.00 Non-agglomerated metal carbides mixed together or with metallic binders 3824.40 Prepared additives for cements, mortars or concretes 3824.40.10 Damp proof or Water proof compounds 3824.40.90 Other 3824.50 Non-refractory mortars and concretes 3824.50.10 Concretes ready to use known as "Ready-mix concrete (RMC)" 3824.50.90 Other 8. The Appellant submitted that
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