Dutiability of granites

[Himansu Sekhar]

As per notes to chapter 68, cutting,polishing and other treatments given to granite blocks to make them slabs or tiles amounts to manufacture. Is there any exemption applicable to the granites not to charge any Cex duty. Kindly clarify. 12/12-ce specifies that manufacture at the construction site is exempted from duty. Is any other exemption available or granite is dutiable. Kindly clarify.

[Rajagopalan Ranganathan]

Sir,

Granite, crude and roughly trimmed (2516 11 00) and Merely cut, by sawing or otherwise. into blocks or slabs of rectangular (including square shape (2516 12 00) are chargeable to 'Nil' rate of central excise duty according to First Schedule of Central Excise Tariff Act 1985 as it stood as on 30.6.2017.

Granite blocks and tiles will fall under heading NO. 6802 23 10 will attract central excise duty @ 12.5% up to 30.6.2017.

AI Summary

Dutiability of granite: processed slabs and tiles are excisable, while crude or merely cut granite attracts a nil duty rate. Cutting, polishing and other treatments that convert granite blocks into slabs or tiles constitute manufacture, making processed granite susceptible to classification as worked stone subject to central excise duty. Crude, roughly trimmed or merely cut rectangular granite entries are recorded at a nil duty rate in the tariff, while finished blocks, slabs and tiles fall under worked stone tariff entries attracting central excise under the applicable schedule; the construction site manufacture exemption applies only where its conditions are satisfied.