Correct Classification of Limestone Slabs under GST Tariff Upheld

The appeal was filed within the prescribed time limit. The goods, "Polished/Processed limestone slabs," were correctly classified under Chapter 68, Heading 6802 of the GST Tariff, based on the processes involved in their production and relevant statutory provisions. The classification was determined considering the processes of polishing, tumbling, and calibration, which go beyond the scope of Chapter 25. The decision confirms the classification under Heading 6802, leading to the appropriate application of the GST rate as per Central Tax (Rate) Notifications.

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Issues Involved:
1. Whether the appeal was filed within the prescribed time.
2. Classification of "Polished/Processed limestone slabs" under the correct HSN Code.
3. Consideration of whether the goods fall under Chapter 25 or Chapter 68 of the GST Tariff.
4. Applicability of the Customs Tariff Act and HSN Explanatory Notes for classification.
5. Examination of the processes involved in the production of the goods.
6. Determination of the correct GST rate applicable.

Detailed Analysis:

I. Whether the Appeal was Filed in Time:
The appeal was filed within the prescribed time. The signed copy of the order dated 25.03.2018 was received by the appellant on 17.04.2018, and the appeal was filed on 07.05.2018, within the 30-day period as required under Section 100(2) of the Act.

II. Classification of "Polished/Processed Limestone Slabs":
The appellant sought classification under Chapter 25, specifically under Headings 2515, 2516, 2521, or 2530, arguing that the goods should be classified as mineral products not elsewhere specified or included, or as goods not mentioned elsewhere. The lower authority classified the goods under Heading 6802 of Chapter 68.

III. Consideration of Whether the Goods Fall Under Chapter 25 or Chapter 68:
1. Chapter 25: The goods in question are limestone slabs that have been subjected to processes such as polishing, tumbling, and calibration. Chapter 25 covers mineral products in the crude state or subjected to processes like washing, crushing, grinding, etc., but not products that have been subjected to further processing beyond that mentioned in each heading.
- Headings 2515 and 2516: These headings cover stones that are roughly trimmed or merely cut into blocks or slabs of rectangular shape. The processes of polishing, tumbling, and calibration are not specified in these headings.
- Note 1 to Chapter 25: The processes of polishing and tumbling are not included in the specified processes allowed under this note. The goods, therefore, do not qualify under Chapter 25.

2. Chapter 68: Heading 6802 covers worked monumental or building stone and articles thereof, including stones that have been polished, chamfered, etc.
- The goods have been subjected to processes beyond those specified in Chapter 25, including polishing and calibration, making them classifiable under Heading 6802.

IV. Applicability of the Customs Tariff Act and HSN Explanatory Notes for Classification:
The GST-rate notification specifically provides for the applicability of the Customs Tariff and related Rules for Interpretation/Explanatory Notes. The HSN Explanatory Notes are relevant and a safe guide for deciding issues of classification, as established by various judgments, including those of the Hon'ble Supreme Court.

V. Examination of the Processes Involved in the Production of the Goods:
1. Polishing: The process involves smoothening the surface of the slabs using a simple table polish machine.
2. Tumbling: This involves further smoothing and polishing of the surface.
3. Calibration: This process ensures that the slabs have a uniform thickness by cutting off uneven portions.

These processes are beyond the crude state or the simple processes allowed under Chapter 25, thus making the goods classifiable under Chapter 68.

VI. Determination of the Correct GST Rate Applicable:
Based on the classification under Heading 6802, the applicable GST rate would be as per the relevant entries in the Central Tax (Rate) Notifications.

Conclusion:
The subject goods "Polished/Processed limestone slabs" are correctly classifiable under Chapter 68, Heading 6802 of the GST Tariff. This classification is based on the detailed analysis of the processes involved and the applicable statutory provisions, including the Customs Tariff Act and HSN Explanatory Notes. The appeal is disposed of accordingly, confirming the classification under Heading 6802.

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