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TMI Blog2018 (6) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... tory 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 ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncing payment of application fee of ₹ 10,000/-. They have also submitted their additional submissions vide their letter dated 05.01.2018. 3. A personal hearing was held in this case and Mr. Rajgopal Sarda, Proprietor of M/s. Maheshwari Stone Supplying Co., Tandurhave appeared for personal hearing on 27-01-2018 and explained the case, as under: a) That there are two kinds of stones available in limestone category. One is BLOCK and the other is SLAB. SAWN is a process performed on Block to derive uniform thickness TILES which are called a CREAM like material and their SSI unit do not do that process and sawn on blocks is mostly practiced in KOTA region of Rajasthan and also in Marble/Granite Industry worldwide. b) That surface ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 and POLISH had not been written which is also a kind of process and the combined effect of CUT+POLISH or any two kinds of processes are complex and less expensive than a single process of SAWN. d) Further, it was contended that, Hon'ble SC while dealing with many appeals and cases upheld that POLISH CUTING done on a Stone slab cannot be equated to manufacturing, hence such stone slabs are not liable to Excise Duty (ED for short). Under VAT regime their Polished limestone slabs were charged 5% of Tax. Hence, when no ED was charged and VAT was only 5%, then their commodity shall definitely fall in Chapter 25 only, whose GST is also 5% for Limestone category it is also noteworthy for the competent authority to note that ROYALTY is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich provides the most specific description shall be preferred to headings providing a more general description. 6. As the applicant has presented their case with an argument that processed/polished limestone slabs are classifiable under chapter 25 of the GST tariff, we would like to draw attention to the Explanatory notes to the Harmonized Commodity Description and coding system: Section V of the HSN deals with classification of Mineral products and in Chapter 25 classification of Salt; sulphur; earths and Stone; plastering materials, lime and cement are dealt with. As per the chapter notes to chapter 25, the headings of this chapter covers mineral products only in the crude state. Minerals which have been otherwise processed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been very crudely worked after quarrying, to form blocks or slabs, still having some rough, uneven surfaces. This working involves removing superfluous protuberances by means of hammer or chisel type tools. This subheading does not cover blocks or slabs which have been cut to a rectangular (including square) shape. 9. Similarly, the subheading explanatory notes for subheading 2515.12 are given below: To fall in this subheading, the blocks and slabs which have been merely cut by sawing must bear discernible traces of the sawing (by wire strand or other saws) on their surfaces. 10. The heading 25.16 covers Granite, Porphyry, Basalt, sandstone and other monumental or Building stones, whether or not roughly trimmed or me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w for ease of reference: This heading covers natural monumental or building stone (except slate) which has been worked beyond the stage of the normal quarry products of chapter 25. The heading therefore covers stone which has been further processed than mere shaping into blocks, sheets or slabs by splitting, roughly cutting or squaring by sawing(square or rectangular faces). The heading thus covers stone in the forms produced by the stone-mason, sculptor, etc., viz: (A) .. (B) Stone of any shape (including blocks, slabs or sheets), whether or not in the form of finished articles, which has been bossed (i.e., stone which has been given a rock faced finish by smoothing along the edges while leaving rough protuberant fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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