2018 (6) TMI 458 - AAR - GST

GST ruling: Polished limestone slabs classified under heading 6802

The authority ruled that 'Polished/Processed limestone slabs' should be classified under heading 6802 of the GST Tariff based on the Explanatory Notes, ... Classification of goods - interpretation of tariff headings - explanatory notes to the Harmonized System (HSN) - Rules for Interpretation of Customs tariff - minerals in crude state - worked beyond the stage of normal quarry productsClassification under Chapter 25 vs Chapter 68 - explanatory notes to HSN - worked beyond the stage of normal quarry products - Rules for Interpretation of Customs tariff - Classification of 'Polished/Processed limestone slabs' under the GST Tariff. - HELD THAT: - The Advance Ruling Authority applied the Rules for Interpretation of the Customs tariff (made applicable to the GST Tariff) and the Explanatory Notes to the HSN. Chapter 25 is directed to mineral products in the crude state and its headings (25.15/25.16/25.21) cover stones that are in the form of quarry products, roughly trimmed or merely cut/sawn into blocks or slabs. The Explanatory Notes to Chapter 25 exclude blocks or slabs that have been further worked (for example polished) from those headings. Heading 68.02 expressly covers natural monumental or building stone which has been worked beyond the stage of normal quarry products, and the Explanatory Notes to 68.02 include stones that have been ground, POLISHED, chamfered, moulded, etc. Since the applicant's limestone slabs undergo polishing and cutting beyond mere quarry products, they are not classifiable in Chapter 25 but are classifiable under heading 6802 of the GST Tariff. The ruling follows the determinative principle that a heading providing a more specific description (i.e., worked/polished stone in 68.02) is preferred where the goods have undergone further processing beyond the crude quarry stage. [Paras 12, 13, 14, 15]'Polished/Processed limestone slabs' are classifiable under heading 6802 of the GST Tariff.Final Conclusion: The application is disposed by ruling that 'Polished/Processed limestone slabs' are correctly classifiable under heading 6802 of the GST Tariff. Issues:Classification of 'Polished/Processed limestone slabs' under GST TariffAnalysis:1. Issue of Classification: The applicant sought an advance ruling on the classification of 'Polished/Processed limestone slabs' under various HSN codes. The applicant contended that their product should be classified under Chapter 25 of the GST Tariff, emphasizing the differences in processes and quality between sawn tiles and polished slabs.2. Rules for Interpretation: The authority considered the Rules for Interpretation of Customs Tariff applicable to the GST Tariff and the General Rules for Interpretation of the schedule. The principle of preferring the heading with the most specific description was highlighted.3. Explanatory Notes: Reference was made to the Explanatory Notes to the Harmonized Commodity Description and Coding System for guidance on the classification of mineral products under Chapter 25. The notes clarified the classification criteria for various types of stones, including Marble, Granite, and Limestone.4. Detailed Examination: The authority extensively analyzed the subheadings under Chapter 25, particularly focusing on the criteria for classification under headings 25.15, 25.16, and 25.21. The notes emphasized the distinction between stones merely cut into blocks or slabs and those further processed through polishing.5. Decision and Ruling: After thorough examination and considering the applicant's submissions, the authority concluded that 'Polished/Processed limestone slabs' should be classified under heading 6802 of the GST Tariff. This decision was based on the Explanatory Notes to heading 68.02, which specify the classification for stones processed beyond the stage of normal quarry products.6. Final Disposition: The authority issued the advance ruling declaring the correct classification of 'Polished/Processed limestone slabs' under heading 6802 of the GST Tariff. The application filed by the applicant was disposed of accordingly, providing clarity on the classification of the product for GST purposes.