2018 (6) TMI 458 - AAR - GST

Classification of goods - Polished/Processed limestone slabs - In which Chapter the commodity called Polished/Processed limestone slabs falls? - Under which HSN Code the above commodity comes? - Can it be classified as Mineral substances not elsewhere specified or included which is mentioned under HSN Code 2530? - Can it be classified under any of the HSN Codes 2515/2516/2521? - Can it be retained under HSN Code 25 with inaugural phrase of Goods not mentioned elsewhere as mentioned at the start of column of 5%? Held that - It is very clear from the explanatory notes given for heading 25.15, 25.16 & 25.21 that stones which are roughly trimmed or merely cut by sawing or otherwise into blocks or slabs of a rectangular shape are classifiable in headings 25.15 or 25.16 and the blocks or slabs which have undergone the process of polishing are not classifiable under these headings - A complete reading of the Explanatory notes clearly specifies that limestone slabs which have undergone the processes of cutting and polishing and which have been worked beyond the stage of the normal quarry products of chapter 25are correctly classifiable under heading 68.02 of the Customs tariff as per the Harmonized Commodity Description and Coding System. As the Rules for Interpretation of Customs tariff was made applicable to GST Tariff and General rules for Interpretation of the schedule, the Polished/Processed limestone slabs are correctly classifiable under heading 6802 of the GST Tariff. Ruling - Polished/Processed limestone slabs are correctly classifiable under heading 6802 of the GST Tariff.

Summary

Issues:
Classification of "Polished/Processed limestone slabs" under GST Tariff

Analysis:

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.