TaxTMI 
TaxTMI 
2025 (12) TMI 1676
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....g a valid import-export code number AAKCK6771F issued by the Office of the Director General of Foreign Trade in terms of the provision of Section 7 of the Foreign Trade Development & Regulation Act, 1992. The applicant seeking an Advance Ruling under Section 28H of the Customs Act, 1962 is covered by the definition of 'applicant' as per Section 28E (c) of Customs Act, 1962. 2.2 The applicant submitted that they are a construction-technology company that offers aluminium formwork solutions for real estate and infrastructure development. The Applicant provides aluminium formworks to various real estate companies for use in construction of residential and commercial complexes. 2.3 About Formworks, the applicant submitted that Formworks are generally moulds used during construction for moulding concrete. The general definitions of formworks are as follows: Source Definition Britannica [https://www.britannica.com/technology/formwork] Formwork, mold used to form concrete into structural shapes (beams, columns, slabs, shells) for building. Formwork can be of timber, steel, plastic, or fiberglass. The inside surface is coated with a bond breaker (plastic or oil) t....
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....nstead, they are left in place as a support to the building or other structure. 2.6 The applicant further submitted that the Aluminium formworks is a new technology, using which construction can be completed in a quicker manner. The Aluminium formworks are akin to a mould which is placed at the construction site, and concrete is poured into the formwork. The same is then allowed to set. Once set, the formwork is removed to reveal the constructed wall, staircase as required. Photograph of the formwork, as it would look when assembled at the construction site is as follows: 2.7 The applicant submitted that the formwork so supplied is made of components procured domestically as well as those which are imported. Further, these formworks are bonded together using various components such as tie pins, wedges, stub pins, push pins, etc. 2.8 Benefits of using Aluminium Formwork: The applicant submitted that One of the primary benefits of aluminium formworks remains their reusability and cost effectiveness. They further submitted that the aluminium formworks are meant for multiple reuses as these are way more durable than plywood and can be easily stored after use. Additionally, the....
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....s. * Hole Punching: The holes will be punched by the multi hole punching machine only on the part of the panels not already punched. * Notching: The slots for the connection of panels via wall tie accessories will be done on the profile of the panel on Milling machine. This process is known as Notching. * Robotic Welding: The stiffeners will be welded to the panel with the help of robots i.e Robotic machine. Along with stiffeners, top rail profiles & other components will be welded to the panels as per the design requirement. Top rail profile will not be welded on the side of the part wherein the same came as is from the vendor. * Coating: After welding is completed, the panels will undergo cleaning process and laquer coat application. The lacquer coat will be applied via spray machine to all the panels on the concrete side face of the panel as a protection coat. * Segregation: After the completion of the production, the panels will be segregated as per the project name to make a pallets for dispatch of the material. * Packing: The prepared pallets will be packed with packaging material so that material will be safe during the t....
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....stics, metal foundry etc. The relevant extract of Customs Tariff is extracted below for ease of reference: Tariff Item Description of Goods (1) (2) 8480 Moulding boxes for metal foundry; mould bases; moulding patterns; moulds for metal (other than ingot moulds), metal carbides, glass mineral materials, rubber or plastic ********** 84806000 Moulds for mineral materials 3.4 The HSN Explanatory Notes for Heading 8480 are extracted below for ease of reference: "This heading covers the moulding boxes used in metal foundry, mould bases and moulding patterns with certain exceptions referred to later, it also covers all moulds (whether or not hinged and whether used by hand or in presses or moulding machines) which are of a kind used for moulding the following materials into blanks or finished articles: (I) Metal and metal carbides. (II) Glasses (including fused quartz or other fused silica) or mineral materials such as ceramic pastes, cement, plaster or concrete. (III) Rubber or plastics In general, the essential function of a mould is to retain the material in a pr....
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....s, has the essential characteristic of the finished formwork. GRI 1 states as follows: "1. The titles of Sections, Chapters and Sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions:" **** 2(a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled." 3.8 The applicant further submitted that the Rule 2(a) deals with two aspects, i.e. classification of incomplete or unfinished articles, and classification of complete or finished articles but presented in unassembled form. The relevant portion of the HSN Explanatory Notes to Rule 2(a)....
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....ded only assembly operations are involved. No account is to be taken in that regard of the complexity of the assembly method. However, the components shall not be subjected to any further working operation for completion into the finished state. Unassembled components of an article which are in excess of the number required for that article when complete are to be classified separately. (VIII) Cases covered by this Rule are cited in the General Explanatory Notes to Sections or Chapters (e.g., Section XVI, and Chapters 44, 86, 87 and 89). (IX) In view of the scope of the headings of Sections I to VI, this part of the Rule does not normally apply to goods of these Sections. 3.9 The applicant submitted that from a perusal of the HSN Explanatory Notes to first part of Rule 2(a), the following is understood by them: i. Incomplete or unfinished articles which have the essential character of the finished article are to be classified as the finished article. ii. Incomplete or unfinished articles having the approximate shape or outline of the finished article which can only be used for the completion into the finished article, are to ....
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.... 76101000 Doors, windows and their frames and thresholds for doors 761090 - Other: 76109010 --- Structures --- Parts of structures, not elsewhere specified: 76109021 -- Portable bridge 76109029 ---- Other 76109030 --- Aluminium plates, rods, profiles, tubes and the like, prepared for use in structure 76109090 --- Other 3.13 The applicant submitted that it is necessary to examine the HSN Explanatory Notes for Heading 7610. The same is extracted below for ease of reference: "The provisions of Explanatory Note to Heading 73.08 apply mutatis mutandis to this Heading. In the case of aluminium, structural parts are sometimes bonded together with synthetic resins or rubber compounds instead of being fixed by the ordinary methods of riveting, bolting etc. In view of their lightness, aluminium and its alloys are sometimes used instead of iron or steal in the manufacture of structural frameworks, ship's superstructure, bridges, sliding doors, electric grid or radio pylons, telescopic pit props, door or window frames, railings, etc." 3.14 The applicant further submi....
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....lded. The aluminium formworks are akin to a coffering panel. Thus, when coffering panel isn't regarded as a structure, the same principle will also apply to the aluminium formworks. 3.18 The applicant submitted that as stated above, the finished aluminium formwork assembly supplied to the end-user by the Applicant will be tailored to meet the specifications and will comprise formwork pieces assembled together using various accessories / components stated above. Thus, the aluminium formworks cannot be classified under Heading 7610. 3.19 Classification of formwork under Heading 7604: The applicant submitted that the relevant portion of the Customs Tariff is reproduced below: Tariff Item Description of Goods (1) (2) 7604 Aluminium Bars, Rods and Profiles 760410 - Of Aluminium, not alloyed: **** 760429 Other **** 76042990 --- Other 3.20 The applicant submitted that relevant extracts from HSN Explanatory Notes to Heading 7604 is as follows: "These products, which are defined in Notes 9 (a) and 9 (b) to Section XV, correspond to simi....
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....ormworks imported, are not merely profiles. They have undergone the process of drilling, punching, welding etc. Thus, the same are excluded from the ambit of Heading 7604. Considering the same, the imported aluminium formworks cannot be classified under Heading 7604 as well. 4. Port of Import and reply from Jurisdictional Commissionerate 4.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. Aluminium Formwork (Mould for concrete) to be imported in the forms of sets at ICD Talegaon under the jurisdiction of office of the Commissioner of Customs, Pune, GST Bhawan, 41/A, Sasoon Road, Pune-411001. In terms of Provisions of the Section 28-1(1) of the Customs Act, 1962 read with the Sub-regulation No. (7) of the Regulation No. 8 of the Customs Authority for Advance Rulings Regulations, 2021, the application was forwarded to the office of the Commissioner of Customs, Pune, GST Bhawan, 41/A, Sasoon Road, Pune-411001 on 21.01.2025 as indicated by the applicant at Sr. No. 13 of their CAAR-1 Forms calling upon them to furnish the relevant records with comments, if any, in respect of the said application. Further reminders were also issued on 07.02....
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....nd used elsewhere for the same purpose. The Aluminium Formwork, therefore, assumes a character of a mould assembled for temporary basis. The applicant submitted that therefore, the Aluminium Formwork in question is very similar to coffering panels specifically included within Heading 8480 by HSN Explanatory Notes. Such coffering panels are used for moulding the ceiling. Therefore, the Aluminium Formwork is correctly classifiable under Heading 8480 and more specifically under Tariff Item 8480 6000. 6.3 The applicant submitted that the Formwork cannot be classified under Heading 7604. They submitted that the provisions of Heading 7407 apply mutatis mutandis to the Heading 7604. Accordingly, both must be read together. The HSN Explanatory Note to Heading 7407 specifically requires following conditions to be fulfilled for being classified under Heading 7604: a. The nature of the goods must not be changed after undergoing the process of drilling/punching/twisting/crimping etc. and b. The goods must not have undergone the process of welding. In present case, the Formwork, prior to its import into India, undergoes the process of welding, punching of holes, etc and ....
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....cts imported by Alcove appear to be a type of permanent formwork rather than temporary formwork as imported by the Applicant. 6.7 The applicant submitted that the Tribunal, Hyderabad in the matter of Vijay Nirman Company Pvt Ltd vs Principal Commissioner of Customs, Visakhapatnam [2025 (1) TMI 747-CESTAT Hyderabad] has classified the Aluminium Formwork under Heading 7610 and more particularly under Tariff Item 7610 9090. However, this decision does not appreciate the manner in which the products in question function. They function as a mould and not a structure and thus cannot be equated with structures. It likens the product to shuttering and says these products are covered under Heading 7610. However, the structure support for shuttering is what is covered under Heading 7610, and not the shuttering panels itself. The formwork now imported is nothing but the panel to mould the cement, and not a product to provide structural support. Thus, this cannot be classified under Heading 7610. 6.8 The applicant submitted various international Rulings classifying the products in question under Heading 8480. The same are as under: Sr. No. Cross Ruling No. & Date Country Prod....
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....at the product i.e. Aluminium Formwork (Mould for Concrete) would be imported either without any supporting components / accessories or with supporting components / accessories. They further submitted that post import, the product will undergo the process of cutting, barcoding of the panel, hole punching, notching, robotic welding, coating and segregation before being packed and despatched for use in construction of residential and commercial complexes as per the design demand of the customer (refer Para 2.11 and 2.12 above). 7.5 Before deciding on the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/Section notes along with HSN explanatory notes. Classification of goods in the Harmonized System of Nomenclature (HSN) is governed by the General Rules for the interpretations. Rule 1 of the General Rules for the Interpretation of the Import Tariff to the Customs Tariff Act, 1975 stipulate that for legal purposes, the classification of the import item shall be determined according to the terms of the headings and any relative Section or Chapter Notes. 7.6 In this case, there are 3 competing headings as put forward by the applicant i.....
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.... and also terminologies such as Shuttering, Mould etc. used in the probable tariff heading listed above. 7.8.1 Shuttering * It is a part of formwork, or you may call it as derivative of formwork. Shuttering is a vertical temporary arrangement which is arranged to bring concrete in a desired shape. (https://civilread.com/formwork-shuttering-centering-staging-scaffolding/) * Shuttering is a temporary structure or mold used to hold freshly poured concrete in place while it cures. Think of it as the "container" that helps shape concrete until it solidifies. (https://qnaengine.com/difference-between-shuttering-and-formwork/) * Shuttering, also known as formwork, is a process of providing support to wet concrete until it sets and attains adequate strength to carry its self-weight. Essentially, the process involves creating temporary moulds of wood or steel in which the concrete will be poured. Once the concrete sets and hardens, the formwork may be removed. (https://www.jkcement.com/blog/basics-of-cement/what-is-shuttering-in-construction/) 7.8.2 Formwork * Formwork is molds into which concrete or similar materials are either precast or cast-in- ....
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....crete. This standard defines Shuttering, Formwork, Falsework and Mould as under: * Formwork (Shuttering): Complete system of temporary structure built to contain fresh concrete so as to form it to the required shape and dimensions and to support it until it hardens sufficiently to become self- supporting. Formwork includes the surface in contact with the concrete and all necessary supporting structure. * Mould: A form for casting precast concrete 'units. 7.8.5 From the above, I find that shuttering/formwork is the temporary mold for concrete (often dismantled shortly after pour), whereas mould (mold) is a type of hollow container. I further find that although formwork is the umbrella term for the forming process, while shuttering refers to the temporary molds used to hold wet concrete until it sets and cures, but often these two terms are used interchangeably. I further find that the Indian standards consider both the terms i.e. Shuttering and Formwork to be one and the same as can be seen from the Indian Standards IS: 6461 (Part V). I further find that Mould is described as a form for casting precast concrete units. I also gather a key difference between f....
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....ssification of the subject goods i.e. Aluminium Formwork with or without its components / accessories. I find that the goods under consideration are Aluminium Formworks used in Construction activities. Further, from the product descriptions and images submitted by the applicant, I find that the product is a formwork system made of Aluminium which would be imported with or without its components / accessories which would be further subjected to customization by the applicant as per the needs of their customers, although the imported system is capable of being used as such without any further customization in the construction activities. 7.10 Further, as discussed above, although formworks are a type of mould, however, in construction activities, Indian Standards IS 6461 (Part V) while defining them, made the distinction between them very clear that one i.e. Formworks (Shuttering) are temporary structures used on-site during construction activities whereas Moulds are used off-site for creating precast concrete elements to be used in the construction activity. Another key difference between formwork and mould is that the formwork provides not only shape to the concrete but also nec....
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....m into, e.g., wire drawing stock (wire-rod) or tubes, are, however. classilled in heading 74.03." 7.11.2 I find that the HSN explanatory notes for Heading 7604 clearly excludes those products which are prepared for use in structures. Since in the subject matter, goods under import would be used in the structures (temporarily), I find that the product under consideration gets excluded from the Heading 7604. 7.12 Relevant Excerpts of HSN explanatory notes for heading 7610 are as under: "The provisions of the Explanatory Note to heading 73.08 apply, mutatis mutandis, to this heading. In the case of aluminium, structural parts are sometimes bonded together with synthetic resins or rubber compounds instead of being fixed by the ordinary methods of riveting, bolting, etc. In view of their lightness, aluminium and its alloys are sometimes used instead of iron or steel in the manufacture of structural frameworks, ships' superstructures, bridges, sliding doors, electric grid or radio pylons, telescopic pit props, door or window frames, railings, etc. The heading excludes: (a) Assemblies identifiable as parts of articles of Chapters 84 t....
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....used for reinforced or pre-stressed concrete work. The heading does not cover : (a) Assembled sheet piling (heading 73.01). (b) Coffering panels intended for pouring concrete, having the character of moulds (heading 84.80) (c) Constructions clearly identifiable as machinery parts (Section XVI). (d) Constructions of Section XVII such as railway and tramway track fixtures and fittings, and mechanical signalling equipment, of heading 86.08; chassis frames for railway rolling-stock, etc., or motor vehicles (Chapter 86 or 87), and the floating structures of Chapter 89. (e) Movable shelved furniture (heading 94.03). 7.12.2 From the HSN explanatory notes for heading 7610 and heading 7308, I find that the heading 7610 is not limited to only those parts of structures which becomes a part of it, but rather encompasses a broad spectrum of aluminium structures and structural components, used in both permanent construction (e.g. roofing, doors, balconies) and temporary settings (e.g. scaffolding, aluminium formwork etc.). 7.13 I have also gone through the HSN Explanatory Notes for Heading 8480. The relevant excerpts of HSN explanatory ....
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....r consideration i.e. Aluminium Formwork is a complete system of construction, making coffering panels a mere part of the system. Further, the applicant itself has submitted that the product i.e. Aluminium Formwork would undergo various processes which also includes cutting and notching, which are not mere assembly processes, and therefore, the same cannot be consider as a complete mould in unassembled form. Further, the product i.e. Aluminium Formworks are not imported for any specific construction activity but for general construction activity and would be modified as per the requirement, therefore, the same cannot be termed as moulds since these are not of any fixed designs. 7.16 Further, I have gone through the various CROSS rulings referred by the applicant at the time of hearing. After going through the same, I find that in those rulings, a complete formwork system for a specific purpose as per the final user's requirement is imported and no extra pieces are allowed to be imported under the heading 8480. CROSS ruling NY C87923 mentions that "Each importation of formwork consists of a specific number of components required for an individual job. There are no extra pieces....
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.... No. 30237 of 2021, Hon'ble CESTAT regional bench at Hyderabad in its final order no. A/30009/2025 dated 13.01.2025 have held that the Aluminium Formworks are rightly classified under CTI 76109010. Also, the photos of the structure placed in the order leaves no doubt that the Aluminium Formwork under consideration in the above referred order is similar to the Aluminium Formwork for which this ruling is being sought and therefore, I find that this order of the regional bench of the Tribunal is also squarely applicable on the product i.e. Aluminium Formwork with or without components / accessories. Further, the applicant's contention that only support for shuttering is covered under Heading 7610 seems misplaced as the heading 7308, more particularly sub-heading 7308.40 uses the words equipment for scaffolding, shuttering, propping and pit propping. Further, as discussed above, the explanatory notes to heading 7308 also includes extensible coffering beams, tubular scaffolding and similar equipments; and also, flat-rolled products, "wide flats" including so-called universal plates, strip, rods, angles, shapes, sections and tubes, which have been prepared (e.g., drilled, bent or....