2018 (10) TMI 1045 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (18) G. S. T. L. 637 (A. A. R. – GST) – Classification of goods – rate of GST – Ramming Mass used in lining of induction furnace – crushed quartz stones used in lining of furnace through claimed as not containing Boric Acid – applicant presently is paying GST @ 18% on Ramming Mass manufactured and supplied by them and classifying them under HSN 3816 – whether impugned goods classified under CETH 2506 or under CETH 3816?
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Held that:- The issue was deliberated in the Conference where, two heads of classification viz., CETH 2506 and 3816 were discussed in case of the product Ramming Mass of the kind obtained by crushing/ grinding and mixing of quartz and quartzite minerals of different sizes and where no external binders are added to such mixture – It was noted that explanatory notes to the HSN of Heading 3816 covers certain preparations (e.g. for furnace linings), with an added refractor binder – Many of the produc
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s falls under HSN code 2806 and would attract 5% rate of tax under GST (2.5% CGST + 2.5% SGST) – RAJ/AAR/2018-19/15 Dated:- 1-9-2018 – NITIN WAPA, AND SUDHIR SHARMA Present for the applicant: Mr. Keshv Maloo (Authorized Representative) Note: Under Section 100 of the CGST & RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST & RGST Act 2017, within a period of 30 days from the date of service of this order. The Issue raised by the applicant is fit to pronounce advance ruling as it falls under ambit of the Section 97 (2) (a), it is given as under: (a) Classification of goods / or services or both. Further, the applicant being a registered person, GSTIN is 08AAECR5585Q1ZG, as per the declaration given by him in Form ARA-OI, the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the application is admitted
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m -125mm which is followed by secondary crushing which is carried out in Granulator where stones obtained from Jaw Crusher is reduced further to 30mm-35mm. d. The granules obtained from above process of crushing is stored in Slip-Buffer Storage from where they are fed into Vertical Shaft Impactor where final crushing takes place to reduce the stone size to 1mm to 7mm. e. The stones are then separated into different Silo according to their size through a Magnetic Separator. This is done through 3 sets of Vibrators. f. Now comes the final stage of manufacturing where the most important ingredient i.e. Boric acid is mixed in the ratio of approx 0.8% to 2% into the stones/ granules of quartz through Electronically Controlled Mixing which acts as a binding material to bind the granules/ stones. g. After mixing of Boric Acid the final product i.e. Ramming Mass gets ready which is then manually inspected to check the particle size ratio followed by Quality Check in Testing Lab from where it i
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plicant has sought classification of material if it is a crushed quartz stone and used by recipient as refractory material in lining of induction furnace where as technical fact is that without mixing boric acid, crushed quartz stone cannot be used as refractory material. It may be a case of wrong declaration. However, this is a usual business practice in industry & classification is done in HSN 2506 with 5% GST (CGST+SGST). 3. In case of applicant the quartz stone is mixed with the Boric acid which becomes a refractory material and is classified under HSN 3816 in Schedule III chargeable to 18% GST. 4. Further applicant has stated that other big manufactures in the industry engaged in the manufacture of Ramming Mass such as TRL Krosaki Refractories Ltd (Formerly TATA Refractory s Ltd) are also paying GST@ 18% on Ramming Mass supplied by them. 5. In view of the above facts the applicant s has correctly classified the Ramming Mass and is paying 18% GST on same 4. Personal Hearing (PH
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a) Dealer is a manufacturer of Ramming Mass. Ramming Mass is used as a refractory material for lining of induction furnaces to withstand very high temperatures. b) Dealer manufactures Ramming Mass by mixing Quartz granules of various sizes with minor ratio of boric acid which in turn acts as binding material to bind quartz powder. c) Major component of Ramming Mass is Quartz granules in unison with boric acid which is mixed in a ratio of 0.8% to 2%. d) Ramming Mass so manufactured are classified as Refractory Material which falls under HSN code 3816 and attracts 18% rate of tax under GST (9% CGST + 9% SGST). e) Quartz powder obtained by crushing Quartz stones fall under HSN code 2806 and attracts 5% rate of tax under GST (2.5% CGST + 2.5% SGST). f) CBEC Released Minutes of Excise Tariff Conference held on 28 and 29 October 2015 B.5 – Ranchi Zone – Classification – Classification of Silica Ramming Mass under Chapter Heading 3816 of CETA, 1985. Issue: A large number of units situated in
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xing of quartz and quartzite minerals of different sizes and where no external binders are added to such mixture. It was noted that explanatory notes to the HSN of Heading 3816 covers certain preparations (e.g. for furnace linings)…, with an added refractor binder …. Many of the products of this heading also contain non-refractory binders such as hydraulic binding agents, therefore, to qualify for classification under heading 3816, refractory binder is required to be added to such powdered (grained quartz/ quartzite mixture. Since no refractory binder is added to the impugned product, the same is not covered under heading 3816. This view is reinforced by the Tribunal in the case of M/s. Mayur Chemicals Industries [2001 (136) ELT 1389] =1990 (1) TMI 234 – CEGAT, NEW DELHI upheld by the Hon ble Supreme Court. Based on above facts along with provision of law the ruling is as follows: RULING a) Ramming Mass which is a Refractory Material, is classifiable under HSN code 3816 and would a
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