2019 (1) TMI 1021 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – TMI – Classification of goods – rate of tax – Tile Adhesive – Tile Grout – Whether the two categories of products will be classifiable under Entry 24 of Schedule IV of Notification No. 1/2017,-Central Taxes (Rate) dated 28.06.2017 liable to CGST at 14% or Entry 97 of Schedule III of Notification No. 1/2017- Central Taxes (Rate) liable to CGST at 9%?
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Held that:- The applicant in their submissions have mentioned that the concerned products are non-refractory chemical-based preparation. Now it is seen that non-refractory preparations are covered under Chapter 3214 – resort shall be made the Explanatory Notes of Harmonized System of Nomenclature published by the World Customs Organization, Brussels (HSN Explanatory Notes) to interpret the above relevant Sub-headings.
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The group of Non refractory surfacing preparations which fall under Chapter 32.14 includes “preparations in powder form based on quartz and cement wi
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E, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by Asian Paints Ltd., the applicant, seeking an advance ruling in respect of the following ISSUE. Whether following two categories of products will be classifiable under Entry 24 of Schedule IV of Notification No. 1/2017,-Central Taxes (Rate) dated 28.06.2017 liable to CGST at 14% or Entry 97 of Schedule III of Notification No. 1/2017- Central Taxes (Rate) liable to CGST at 9%? 1. Tile Adhesive i Tile Adhesive for Normal Application ii. Glass Tile Adhesive iii. Tile-on-Tile Application iv. Tile Adhesive for Stone Heavy Tile Application 2. Tile Grout i. Cement based Tile Grout ii. Epoxy based Tile Grout At the outse
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IV of Notification No. 1/2017- Central Taxes (Rate) dated 28.06.2017 and paying CGST thereon. The description of the products is explained below and the invoices for the products is annexed herewith in Table – 1 Table – 1 Sr. No. Product Description Classification adopted by NM Invoice dated Annexure Tile Adhesive i. Tile Adhesive for Normal Application ii. Glass Tile Adhesive iii. Tile – on – Tile Application v. Tile Adhesive for Stone & Heavy Tile Application Entry 24 of Schedule IV 3 Tile Grout i. Cement based Tile Grout ii. Expoxy based Tile Grout Entry 24 of Schedule IV 1.4. The brief description of each of the above two categories of product is given below for ready reference: 1.5. Tile Adhesive: Tile adhesive is compound which converted into slurry by adding water to apply on wall/ stones/tiles to fix the tiles on the surface. The compound consists of Cement, Sand and Polymer. Sub category of tile adhesive products are explained as below: 1.5.1. Tile Adhesive for normal app
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ce. 1.5.3. Tile-on-Tile application: The product Tile-on-Tile Adhesive is single component Grey cement based polymer modified adhesives for fixing tiles over tiles on floors and walls in interiors as well as exteriors. The product contains special adhesives that provide excellent bonding & grabbing properties. The product is sold as free flowing powder. This product is mixed with water to form a slurry and is then applied on the surface (where tiles have to be fixed using trowel. The said surface is then combed with notch trowel and tiles are fixed. This product is used under the tiles to join the tiles together in order to provide strength to the walls, floors, etc. where the tiles are applied. It is used an adhesive for bonding of tiles. 1.5.4 Tile Adhesive for Stone & Heavy Tile application: The product Tile Adhesive for Stone & Heavy Tile Application is single component Grey cement based polymer modified tile adhesive specially designed for heavy stone tile applications
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n for ceramic tiles, vitrified tiles and stone joint where hygienic and sterile condition is expected. The compound consists Of Epoxy resin, Hardener & Colorant 1.7. The Applicant states that the above products are not manufactured by the applicant. The applicant buys the product from separate vendors and sells it under its brand name. 1.8. The Applicant states that under the erstwhile regime, the manufacturers of the Applicant were classifying the above products under Chapter Heading 3214. At this point it is relevant to note that the rate of excise duty for the Chapter Heading 3214 and the 3824 were same. Further, since the Applicant was merely a trader, the classification issue did not arise at the hands of the Applicant under the erstwhile Excise regime. 1.9. The Applicant submits that the aforesaid products have also been imported in the past under both the competing entries. Since the rate of the tax under both the entries was same, the applicant did not face the issue of cor
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of above two categories of products. 2.3. Entry 97 of Schedule III to Notification No. 1/2017-Central Taxes (Rate) dated 28.06.2017 is extracted below for ready reference: Schedule III 9% S.No. Chapter [Heading/Sub-heading/Tariff item Description of Goods 1 2 3 97 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 2.4. The other competing entry is Entry 24 of the Schedule IV to Notification No. 1/2017 – Central Taxes (Rate) dated 28.06.2017. The same is extracted below for ready reference: Schedule IV 14% S.No. Chap/Hdg/Sub-hdg Tariff item Description of Goods 1 2 3 24. 3214 Glaziers putty, grafting putty, resin cements, caulking compounds and other mastics; painters fillings; non- refractory surfacing preparations for facades, indoor walls, floors, ceilings or the like 2.5. The Applicant submits that on a plain readin
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The Applicant submits that in case of any ambiguity in classification of goods under the Notification No. 1/2017, resort shall be made to the General Explanatory Notes to the Customs Tariff Act and the HSN Explanatory Notes. 3.2. The Explanation to the above Rate Notification No. 1/2017 – Central Taxes (Rate) dated 28.06.2017 is extracted below for ready reference: Explanation.- For the purposes of this Schedule, (i) The phrase unit container means a package, whether large or small (for example, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a pre- determined quantity or number, which is indicated on such package. (ii) The phrase registered brand name means brand name or trade name, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified
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dy reference: (A): Relevant Extract of Chapter Heading 32 14: Tariff Item Description of goods Unit Rate of duty Standard Preferential areas 3214 GLAZIERS PUTTY, GRAFTING PUTTY, RESIN CEMENTS, CAULKING COMPOUNDS AND OTHER MASTICS; PAINTERS FILLINGS; NON-REFRACTORY SURFACING PREPARTIONS FOR FACADES, INDOOR WALLS, FLOORS, CEILINGS OR THE LIKE 32141000 – Glaziers putty, grafting putty, resin cements, caulking compounds and other mastics; painters fillings kg. 10% 321490 – Other : 32149010 Non-refractory surfacing preparations kg. 10% 32149020 Resin cement kg. 10% 32149090 Other kg. 10% (B): Relevant Extract from Chapter Heading 3824 Tariff Item Description of goods Unit Rate of duty Standard Preferential areas 1 2 3 4 5 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 50 – Non-refractory mortars and concretes: 3
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ing preparations are used on facades, indoor walls, floors and ceilings, swimming pool walls and floors, etc., to make them waterproof and improve their appearance. Generally they remain visible as the final surfacing. This group includes: (1) Powdered preparations consisting of equal parts of plaster and sand with plasticisers. (2) Preparations in powder form based on quartz and cement with small quantities of added plasticisers, used for instance, after adding water, for setting wall or floor tiles. (3) Pasty preparations made by coating minerals fillers (ground marble, quartz, or a mixture of quartz and silicate, for instance) with a binder (plastics or resins), with added pigments and, where appropriate, water or solvent. (4) Liquid preparations consisting, for instance, of synthetic rubber or acrylic polymers, asbestos fibres mixed with a pigment, and water. These are applied on facades with paint brush or spray gun and form a much thicker layer than paint. 3.7. The Applicant subm
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Vs. Commissioner of Central Excise, Jaipur – 2018-TIOL-243 CESTAT-DEL = 2017 (12) TMI 892 – CESTAT NEW DELHI wherein while deciding the classification of finished products such as cement grout, repair mortar, repair concrete, tile adhesives, waterproofing compounding sealants for tiles, walls etc. Hon ble CESTAT held that the above products are not of a type used for surfacing preparations for walls, ceilings etc. It is held that the said products cannot be classified under Chapter Heading 3214. 3.10. Thus, the Applicant submits that, the above two categories of products will not fall under Non-Refractory Surfacing Preparations contained in Chapter Heading 3214. 3.11. The Applicant submits that the above two categories of products will fall under Chapter Heading 3824 under the Sub Heading 3824 50 relating to Non refractory mortars and concretes. 3.12. The Applicant submits that the Chapter Notes and HSN Explanatory Notes does not provide any specific note to interpret the said Sub-Head
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. Vs. Assistant Sales Tax Officer, Akola – (1961) 12 STC 286 (SC) = 1961 (3) TMI 55 – SUPREME COURT OF INDIA held that if a word is used in a taxing statute, it has to be understood as in common parlance. 3.15. Further, Hon ble Supreme Court in the case of Commissioner of Sales Tax, Madhya Pradesh Vs. Jaswant Singh Charan Singh – (1967) 19 STC 469 (SC) while considering the question of Whether the word coal covers Charcoal, held that the meaning of the word coal in the statute as understood in its commercial or popular sense would include charcoal . The Apex Court upheld the decision of High Court Wherein the High Court had observed that while construing entries in a statute like the Sales Tax Acts, the Court should prefer the Popular meaning of the terms used in such entries and not their dictionary meanings and that so construed charcoal would be included in the word coal . 3.16. The Hon ble Supreme Court in the case of Commissioner of Central Excise Vs. Connaught Plaza Restaurant (P
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wall. 3.18. The Applicant submits that in the absence of definition of the term mortar under the Act, resort can also be made to the dictionary meaning of the term mortar. As held by the Supreme Court in Ponds India Ltd vs. Commissioner of Trade Tax, Lucknow – (2008) 15 VST 256 (SC) = 2008 (5) TMI 46 – SUPREME COURT the dictionary meaning is one of the valuable aid for legal interpretation. 3.19. Thus, the term mortar defined in various dictionaries is extracted below for ready reference: Oxford Dictionary: A mixture of lime with cement, sand and water, used in building to bond bricks or Stones. Hawley s Condensed Chemical Dictionary at Pg 863: A type of adhesive or bonding agent that may be either inorganic or organic, soft and workable when fresh but sets to a hard, infusible solid on standing, either by hydraulic action or by chemical cross-linking. The chief ingredients of inorganic mortars are cement, lime, silica, sulfur and sodium or potassium silicate. Organic mortars are based
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products under 24 of Schedule IV of Notification No. 1/2017- Central Taxes (Rate) dated 28.06.2017 and paying CGST thereon. The description of the products is explained below and the invoices for the products are annexed along with the application. Table – 1 Sr. No. Product Description Classification adopted by NM 1. Tile Adhesive for Normal Application Entry 24 of Schedule IV 2. Glass Tile Adhesive Entry 24 of Schedule IV 3. Tile – on – Tile Application Entry 24 of Schedule IV 4. Tile Adhesive for Stone & Heavy Tile Application Entry 24 of Schedule IV 5. Cement based Tile Grout Entry 24 of Schedule IV 6. Epoxy based Tile Grout Entry 24 of Schedule IV 1.3. The Applicant submits that, in the present Advance Ruling Application the Applicant has raised the question for classification of 6 products which can be broadly classified in two categories; 1) Tile Adhesives and 2) Tile Grouting Material. 1.4. Before. going to the description of each of the products, below is the composition of
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e tiles have to be fixed) using trowel. The said surface is then combed with notch trowel and tiles are fixed. This products is used under the tiles to join the tiles together in order to provide strength to the walls, floors, etc., where the tiles are applied. It is used an adhesive for bonding of tiles. 1.8. Glass Tile Adhesive: 1.8.1. The Product Glass Tile Adhesive is single component white cement based polymer modified fiber reinforced adhesives for fixing glass mosaic tiles in interiors as well as exteriors. The product is sold as free flowing powder. This product is mixed with water to form a slurry and is then applied on the surface (where tiles have to be fixed) using trowel. The said surface is then combed with notch trowel and tiles are fixed. This products is used under the tiles to join the tiles together in Order to provide strength to the walls, floors, etc. where the tiles are applied. It is used an adhesive for bonding of tiles. 1.9. Tile – on – Tile Application: 1.9.1
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internal as well as external vertical surfaces. The product is sold as free flowing powder. This product is mixed with water to form a slurry and is then applied on the surface (where tiles have to be fixed) using trowel. The said surface is then combed with notch trowel and tiles are fixed. This product is used under the tiles to join the tiles together in order to provide strength to the walls, floors, etc. where the tiles are applied It is used an adhesive for bonding of tiles. 1.11 Cement based Tile Grout: 1.11.1. This product is a single component polymer modified tile grout for filling tile joints upto 5mm width. It is a specially formulated premium, fast selling, low shrinkage grout that prevents ingress of water through the joint. 1.12. Epoxy based Tile Grout: 1.12.1. This product is a two-component epoxy resin based tintable grout specifically designed for use in application for ceramic tiles, vitrified tiles and stone joint where hygienic and sterile condition is expected. 1
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ntries was same under the Central Excise Tariff Act, 1985, the applicant did not face the issue of correct classification. 1.17. The Applicant states that as far as classification under GST is concerned, if the products are classifiable under Chapter Heading 3214, then the said products will be liable to GST at 28% under Entry 24 of Schedule IV of the Notification No. 1/2017 – Central Tax (Rate) dated 2806.2017. In case, it is held that above products are classifiable under Chapter Heading 3824 then the rate Of GST applicable will be 18% under Entry 97 of Schedule III of the said Notification No. 1/2017 – Central Taxes (Rate) dated 28.06.2017. 1) In view of the above facts, the applicant has raised the question as to whether the six products will be classifiable under Entry 24 of Schedule IV of Notification No. 1/2017- Central Taxes (Rate) dated 28.06.2017 liable to CGST at 14% or Entry 97 of Schedule III of Notification No. 1/2017 – Central Taxes (Rate) liable to CGST at 9%? Submissio
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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 2.5. The Other competing entry is Entry 24 of the Schedule IV to Notification No. 1/2017 – Central Taxes (Rate) dated 28.06.2017. The same is extracted below for ready reference: Schedule IV 14% S. No. Chapter/Heading/Sub-heading/ Tariff item Description of Goods 1 2 3 24. 3214 Glaziers putty, grafting putty, resin cements, caulking compounds and other mastics: painters fillings; non- refractory Surfacing preparations for facades, indoor walls, floors, ceilings or the like. 2.6. The Applicant submits that on a plain reading of the description in the above two competing entries, it is clear that the aforesaid six products of the applicant will fall under Entry 97 of Schedule III being chemical products and preparations of the chemical or allied industries. 2.7. The applicant submits that, the aforesaid six pro
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as the last finishing material. The said preparations are used to give the finishing touches on the surface. Therefore, the entry refers to surfacing preparations for facades, indoor walls, floors, ceilings where final smooth finishing is required. 2.10. The Applicant submits that product of the Applicant is not used as surface preparation neither it is meant to be used as a surface preparation. 2.11. The products of the applicant such as Tile Adhesives is nothing but a mortar used for fixing the tiles for any kind of flooring or walls. The difference between the normal mortar and the tile adhesives is the negligent percentage of additive which delays the process of drying the mortar. If a mason binds the tiles with a normal mortar, then depending upon the environmental conditions, the mortar will dry up quickly. Once the mortar has dried, the mason cannot then set the tiles or remove it without damaging the tile. On the Other hand, if the mason uses the tile adhesive, the mason, the
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sting of mixtures of natural products. 2.15. In the present case, the tile adhesives and the tile grout are prepared binders and chemical preparations consisting of natural products such as cement and grit. Further, the said products do not fall under any other Chapter Heading as explained above. Thus, the said products will be classifiable under Entry 97 of Schedule III consisting of goods of Chapter Heading 3824. 3. The Applicant submits that even by the Chapter Notes to Customs Tariff Act and the HSN Explanatory Notes, the above six products are classifiable under Chapter Heading 3824: 3.1. The Applicant submits that in case of any ambiguity in classification of goods under the Notification No. 1/2017, resort shall be made to the General Explanatory Notes to the Customs Tariff Act and the HSN Explanatory Notes. 3.2. The Explanation to the above Rate Notification No. 1/2017 – Central Taxes (Rate) dated is extracted below for ready reference: Explanation.- For the purposes of this Sch
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the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 3.3. In view of the Explanation (iv), the Chapter Heading under consideration shall I con be interpreted on the basis of rules of interpretation of the First Schedule to the Customs Tariff Act, 1975. Before resorting to the Chapter Notes and Sub Heading Notes of the Customs Tariff Act, the relevant Tariff Items of the Customs Tariff Act are extracted below for ready reference: (A): Relevant Extract of Chapter Heading 3214: Tariff Item Description of goods Unit Rate of duty Standard Preferential areas 3214 GLAZIERS PUTTY, GRAFTING PUTTY, RESIN CEMENTS, CAULKING COMPOUNDS AND OTHER MASTICS; PAINTERS FILLINGS; NON-REFRACTORY SURFACING PREPARTIONS FOR FACADES, INDOOR WALLS, FLOORS, CEILINGS OR THE LIKE 32141000 – Glaziers putty, grafting putty, resin cements, caulk
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(HSN Explanatory Notes) to interpret the above relevant Sub-headings. 3.6. As per the plain reading of the HSN Explanatory Note on Chapter Heading 3214, the aforesaid six products does not fall under the Chapter Heading 3214. The relevant portion Of the HSN Explanatory Notes is extracted below for ready reference: 32.14 – GLAZIERS PUTTY, GRAFHNG PUTTY, RESIN CEMENTS, CAULKING COMPOUNDS AND OTHER MASTICS: PAINTERS FILLINGS; NON-REFRACTORY SURFACING PREPARATIONS FOR FACADES, INDOOR WALLS, FLOORS, CEILINGS OR THE LIKE. (B) NON-REFRACTORY SURFACING PREPARATIONS. Non-refractory surfacing preparations are used on facades, indoor walls, floors and ceilings, swimming pool walls and floors, etc., to make them waterproof and improve their appearance. Generally they remain visible as the final surfacing. This group includes: 1. Powdered preparations consisting of equal parts of plaster and sand with plasticisers. 2. Preparations in powder form based on quartz and Cement with small, quantities of
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ng, 4.2. In the present case, all the above six products are non-refractory preparations. However, they are not used for water-proofing or improving the appearance of the wall of tiles. The said six products are used for bonding of the tiles either horizontally or vertically. Further in no case, the above six products emerge as final visible surface. In fact, the Tile Adhesives are never used on the surface. 4.3. The Applicant relies on the decision of Hon ble CESTAT in the case of Sika India Pvt. Ltd. Vs. Commissioner of Central Excise, Jaipur – 2018-TIOL-243 CESTAT-DEL = 2017 (12) TMI 892 – CESTAT NEW DELHI wherein while deciding the classification of finished products such as cement grout, repair mortar, repair concrete, tile adhesives, waterproofing compounding sealants for tiles, walls etc. Hon ble CESTAT held that the above products are not of a type used for Surfacing preparations for walls, ceilings etc. It is held that the said products cannot be classified under Chapter Headi
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IA held that in interpreting items in statutes like the Excise Acts or Sales Tax Acts, whose primary object is to raise revenue and for which purpose they classify diverse products, articles and substances resort should be had not to the scientific and technical meaning of the terms or expression used but to their popular meaning that is to say, the meaning attached to them by those dealing in them. Further, Hon ble Supreme Court in the case of Ramavatar Bhuadaiprasad Etc. Vs. Assistant Sales Tax Officer, Akola – (1961) 12 STC 286 (SC) = 1961 (3) TMI 55 – SUPREME COURT OF INDIA held that if a word is used in a taxing statute, it has to be understood as in common parlance. 4.9. Further, Hon ble Supreme Court in the case of Commissioner of Sales Tax, Madhya Pradesh Vs. Jaswant Singh Charan Singh – (1967) 19 STC 469 (SC) = 1967 (2) TMI 65 – SUPREME COURT OF INDIA while considering the question of whether the word coal covers charcoal, held that the meaning of the word coal in the statute
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r commercial or trade understanding, or according to their popular meaning. In other words, they must be constructed in the sense that the people conversant with the subject-matter of the statute, would attribute to it. 4.11 The Applicant submits in the present case, the product is mainly used by the civil contractors and plumbers who use the above products of the Applicant company for fixing the tiles. The said contractors and plumbers use the tile adhesives as mortars for bonding the tiles with floor or the wall. 4.12. The Applicant submits that in the absence of definition of the term mortar under the Act, resort can also be made to the dictionary meaning of the term mortar. As held by the Supreme Court in Ponds India Ltd Vs. Commissioner of Trade Tax, Lucknow – (2008) 15 VST 256 (SC) = 2008 (5) TMI 46 – SUPREME COURT the dictionary meaning is one of the valuable aid for legal interpretation. 4.13. Thus, the term mortar defined in various dictionaries is extracted below for ready re
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fixing and bonding the tiles on the walls and floorings. It is not used as a surface finishing material. Hence, the said products will be covered under the above Chapter Heading 3824 only. 5. The Applicant submits that above six products will be classifiable under Chapter Heading 3824 as per Rule 3 of the General Rules for the Interpretation of First Schedule to the Customs Tariff Act. 1975. 5.1. The Applicant further submits that even as per the General Interpretation Rules applicable to First Schedule to the Customs Tariff Act, 1975, the aforesaid six products will be classifiable under Chapter Heading 3824. 5.2. The Applicant submits that the products sold by the Applicant is mixture consisting of different goods such as cement, sand and additives. 5.3. Thus, the said products will be classifiable as per Rule 3 read with Rule 2(b) of the General Interpretation Rules to First Schedule. Rule 3 of the said Rules is extracted below for ready reference: 3. When by application of rule 2(b
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by reference 10 (a) or (b), they shall be classified under the heading which occur s last in numerical order among those which equally merit consideration, 5.4. As per Rule 3(b) the mixtures of different materials shall be classifiable as per the material which gives them the essential character. In the present case, no doubt it is the cement which gives them the essential character. It is the cement which is used as the main binder. Thus, the said product is classifiable as a prepared binder of cement. 5.5. In any case, even if the above products cannot be classified under Rule 3(b), the said products will be classifiable under Chapter Heading 3824 being the last heading occurring in numerical order among those which merits equal consideration. 6. In view of the above, it is respectfully prayed that the question raised in the present advance ruling application be answered in favour of the Applicant holding that the above six products are classifiable under Entry 97 of Schedule III li
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larification regarding classification of goods as per HSN Code of Central Excise Tariff Act and rate of tax accordingly. Applicant has charged 28% on said product as per GST Act & as per HSN code 3214, but applicant has raised the issue that no such product has clearly mentioned in chapter heading of Central Excise Tariff Act and he urged that his product should fall in HSN Code 3824 instead of HSN Code 3214 and levy of ta be 18% instead of 28%. He has further stated that the product is a non-refractory mortars and concretes under sub heading 382450. He further stated that as per such heading 38245010 description is concretes ready to use known as readymix concrete (RMC) . He stated that the goods manufactured by applicant is nothing but mortars as per tariff heading 382450 & product should fall 38245090 whose description is other for proving the claim Of the dealer he has given documents such as invoices, and application. After scrutiny of documents submitted along with applic
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ALLS, FLOORS, CEILINGS OR THE LIKE 32141000 – Glaziers putty, grafting putty, resin cements, caulking compounds and other mastics; painters fillings kg. 10% 321490 – Other : 32149010 Non-refractory surfacing preparations kg. 10% 32149020 Resin cement kg. 10% 32149090 Other kg. 10% As per the applicant request said product should be fall in HSN Code 3824 and subheading 38245090 which is as under: 38610000 Refectory cements, morters, concretes and similar compositions, other than products of heading 3801 Kg 10% 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 38241000 – Prepared binders for foundry moulds or cores kg. 10% 38243000 – Non-agglomerated metal carbides mixed together or with metallic binders kg. 10% 382440 – Prepared additives for cements, mortars or concretes: 38244010 Damp proof or water proof compoun
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hesive, polymer reduces the water holding capacity of concrete and make it hard instantly. Polymer contained mixture also reduces compressive strength of the concrete, which is basic property of the cement / concrete mixture. Polymer i.e. methyl cellulose is act as plasticizer and in rightly fall in non-refractory surfacing preparation as per HSN Code 3214. The description of non-refractory surfacing preparation is as under: Non refractory surfacing preparations are used on facades, indoor walls, floors and ceilings, swimming pool walls and floors, etc., to make them waterproof and improve their appearance. Generally they remain visible as the final surfacing. This group includes: 1) Powdered preparations consisting of equal parts of plaster and sand with plasticizers. 2) Preparations in powder form based on quartz and cement with small quantities of added plasticizers, used for instance, after adding water, for setting wall or floor tiles. 3) Pasty preparations made by coating mineral
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es, crushed stones, cement and water. Since it is made up of many materials, it is considered a composite material. The various aggregates such as gravel and stones are bound together by a mixture of cement and water that hardens over time and provide strength to the concrete. Various types of concrete are produced depending on its intended purpose, including: Portland cement concrete – This is the common concrete that is used as a building material for residential, industrial and commercial purposes. The cement used in this concrete is rich in alumina content (aluminous cement).This is a lime-based concrete. Asphalt concrete – this type is used primarily for road construction. The role of cement in this case is played by bitumen, which tightly holds and binds the concrete composites in the presence of coal tar at high temperatures. Polymer concrete – This type is used where the cementing material is a polymer. High temperature have the effect of weakening the bond and endangering the
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HPMC into the mortar, there will be a smaller decrease in the flexural strength of mortar but a larger decrease in the compressive strength. On the basis of structural engineering and common parlance test ready-mix concrete is rightly classified in description non refractory mortars and concretes under heading 3824 of central excise tariff act. Applicant has given number of citation of various courts on common parlance test, which are squarely applicable to the products covered by heading 3214 where in rate of tax is 28 In facts the decision given below cited by the applicant supports the view express by this office. 1) Indo International Industries Vs. Commissioner of Sales Tax, UP – (1981) 47 STC 359 (SC) = 1981 (3) TMI 77 – SUPREME COURT OF INDIA 2) Ramavatar Bhuadaiprasad Etc. Vs. Assistant Sales Tax Officer, Akola – (1961) 12 STC 286 (SC) = 1961 (3) TMI 55 – SUPREME COURT OF INDIA 3) Commissioner of Sales Tax, Madhya Pradesh Vs. Jaswant Singh Charan Singh – (1967) 19 STC 469 (SC)
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G The case was taken up for Preliminary hearing on dt. 18.07.2018 when Sh. Rahul Thakkar, Advocate along with Sh. Hiral Raja, G. M. Taxation & Sh. Niket Prasad Branch Manager and Sh. Ajay Patel, Sr. Manager Taxation appeared and contended for admission of application as per contentions in their ARA and oral & written submissions. Jurisdictional Officer, Sh. J. M. Raut, Dy. Commr. of Sales Tax (E-636), Large Tax Payer Unit-III, Mumbai appeared and made written submissions. The application was admitted and called for final hearing on 08.08.2018 when Sh. Rahul Thakkar, Advocate along with Sh. Hiral Raja, G. M. Taxation & Sh. Ajay Patel, Sr. Manager Taxation & Sh. Yogender Pandey appeared & made oral & written submissions. The Jurisdictional Officer was not present. 05. OBSERVATIONS We have gone through the facts of the case, documents on record and submissions made by both, the applicant and the department. The issue before us is a classification issue. The applica
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e products under Chapter Heading 3214 and they were merely traders, classification issue did not arise at their end. They have further submitted that the aforesaid products have also been imported in the past under both the competing entries, i.e. 3214 and 3824 and they did not have a classification issue because the rate of the tax under both the entries was same, Their contention is not correct. It is the duty of the manufacturer to arrive at a proper classification in respect of the goods manufactured. Just because multiple classifications attract the same rate of tax, it is not proper for a manufacturer to choose any classification that is deemed fit. The classification has to be based on the basis of a proper description of the goods. We find that the applicant in their submissions have mentioned that the concerned products are non-refractory chemical-based preparation. Now it is seen that non-refractory preparations are covered under Chapter 3214. The applicant has submitted that
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ractory surfacing preparations are used on facades, indoor walls, floors and ceilings, swimming pool walls and floors, etc., to make them waterproof and improve their appearance. Generally they remain visible as the final surfacing. This group includes: (1) Powdered preparations consisting of equal parts of plaster and sand with plasticizers. (2) Preparations in powder form based on quartz and cement with small quantities of added plasticizers, used for instance, after adding water, for setting wall or floor tiles. (3) Pasty preparations made by coating minerals fillers (ground marble, quartz, or a mixture of quartz and silicate, for instance) with a binder (plastics or resins), With added pigments and, where appropriate, water or solvent. (4) Liquid preparations consisting, for instance, of synthetic rubber or acrylic polymers, asbestos fibres mixed with a pigment, and water. These are applied on facades with paint brush or spray gun and form a much thicker layer than paint. It is see
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follows : ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-44/2018-19/B-117 Mumbai, dt. 17/09/2018 Question :-1. Whether following two categories of products will be classifiable under Entry 24 of Schedule IV of Notification No. 1/2017-Central Taxes (Rate) dated 28.06.2017 liable to CGST at 14% or Entry 97 of Schedule III of Notification No. 1/2017-Central Taxes (Rate) liable to CGST at 9%? 1. Tile Adhesive i. Tile Adhesive for Normal Application ii. Glass Tile Adhesive iii. Tile-on-Tile Application iv. Tile Adhesive for Stone Heavy Tile Application 2. Tile Grout i. Cement based Tile Grout ii. Epoxy based Tile Grout Answer :- In view of the discussions made above, the products in question will be classifiable under Entry 24 of Schedule IV of Notification No. 1/2017-Central Taxes (Rate) dated 28.06.2017 liable to GST @ 28% (14% each of CGST and SGST). – Case laws – Decisions – Judgements – Orders
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