2018 (4) TMI 812 - AAR - GST

Classification of goods - SIKA Block Joining Mortar - section 97 (2) (a) & (e) of the CGST / WBGST Act, 2017 - whether classifiable under tariff item 3214 90 90 in terms of Chapter Heading No. 3214 to the HSN? - Held that - HSN 3214 90 90 is a residuary classification. It should include all other products that have the general characteristics mentioned above, and, therefore, classifiable under heading 3214, but are not specifically mentioned. Clearly, Sika Block Joining Mortar satisfies the general characteristics of such products as per the Explanatory Notes above, and, therefore, classifiable under this tariff item. Clearly, a chemical preparation can be classified under such residuary heading only if it is not elsewhere specified. As the Applicant s product, namely Sika Block Joining Mortar is already specified under tariff item 3214 90 90, heading 3824 does not come into the picture. Ruling - SIKA Block Joining Mortar is to be classified under tariff item 3214 90 90 of the Customs Tariff Act, 1975, and, therefore, taxable under serial no. 24 of Schedule IV vide Notification No. 01/2017-Central Tax (Rate) dated 28/06/2017 under CGST Act, 2017 and 1125-FT dated 28/06/2017 under WBGST Act, 2017.

Summary

Issues: Classification of "SIKA Block Joining Mortar" under HSN 3214 90 10 or 3824 50 90

Issue 1: Classification under HSN 3214 90 10
The Applicant sought an Advance Ruling on the proper classification of their product, "SIKA Block Joining Mortar," under HSN 3214 90 10. The product is described as a Grey Cement based non-shrink, self-curing water resistance mortar for fixing AAC Blocks, Concrete Blocks, Fly Ash Bricks, etc. The Applicant provided details of similar products classified under HSN 3824 50 90 by competitors. The CESTAT order directed a re-examination of the classification, emphasizing that products like cement, grout, and repair mortar may not fall under subhead 3214. However, the Commissioner (Appeals) in Goa classified a similar product under tariff item 3214 90 90. The CEGAT in Mumbai also classified ready-mix plasters under subhead 3214. The Applicant's product, "SIKA Block Joining Mortar," is a cementitious mortar modified with polymers, used for joining masonry units. The Explanatory Notes suggest that products under HSN 3214 90 10 include non-refractory surfacing preparations for various surfaces, which align with the characteristics of the Applicant's product.

Issue 2: Classification under HSN 3824 50 90
The Applicant also considered the classification under HSN 3824 50 90, which covers chemical products and preparations of the chemical industry. However, the ruling clarified that since the product is already specified under tariff item 3214 90 90, it does not fall under the residuary heading 3824. The decision ruled that "SIKA Block Joining Mortar" should be classified under tariff item 3214 90 90, making it taxable under specific provisions of the CGST Act, 2017 and WBGST Act, 2017. The ruling is valid unless declared void under the relevant provisions of the GST Act.

This comprehensive analysis of the judgment delves into the classification issues surrounding the product "SIKA Block Joining Mortar" under different HSN codes, referencing legal precedents, Explanatory Notes, and specific characteristics of the product to arrive at a conclusive ruling on its proper classification under the Customs Tariff Act, 1975.