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TMI Blog2018 (8) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... truction. One such product is manufactured and marketed by it under the brand name of "SIKA Block Joining Mortar" and is said to be used for joining masonry units like AAC blocks, Concrete blocks, fly ash bricks, etc. The Appellant had approached the West Bengal Authority for Advance Ruling for determining the proper classification of "SIKA Block Joining Mortar". The West Bengal Authority for Advance Ruling (hereinafter referred to as "WBAAR") after hearing the matter and examining the documents, vide its Ruling dated 09.04.2018, decided that: "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. 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , fly ash, OPC/PPC Cement, hydrated lime and polymer additives. b. The Appellant argued that as per common parlance the product is classifiable as mortar under Tariff Heading 3824 50 90 citing the following judgements: i. Porritts & Spencer (Asia) Ltd. Vs. State of Haryana [1983(13) ELT of 607 (SC) ii. Asian Paints India Ltd v. Collector of Central Excise [1998 taxmann.com 6(SC)] iii. Plasmac Machine Manufacturing Co. (P) Ltd v. Collector of Central Excise [1991 taxmann.com 6 (SC)] iv. Dabur Industries Ltd vs. CCE [2005] 4 SCC 9, v. Commissioner of Central Excise v. Wockhardt Life Sciences Ltd (2012) 5 SCC 585. c. By citing the judgement of Morocco (India) Ltd vs. Collector of Customs, Madras [1997(91) ELT 126 (Tribunal)] & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der both the heads, that is Tariff Head 3214 90 10 and Tariff Head 3824 50 90, was the same. Under the GST Act, however, there is a difference of 10 % which is pushing them out of market as its competitors are supplying the similar products charging lower tax. Following is the comparison of duty/tax in pre- and post- GST regime: Tariff Heading Duty (Prior to GST) Tax Rate under GST 38245090 Excise: 12.5%, VAT: 14.5% 18% 32149010 Excise: 12.5%, VAT: 14.5% 28% 6. The Appellant submitted that 'SIKA Block Joining Mortar' is used for joining masonry units like AAC blocks, Concrete blocks, fly ash bricks, etc., to provide strength to the building. The constituents of this item are said to be as follows: Name of the Raw Mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with metallic binders 3824.40 Prepared additives for cements, mortars or concretes 3824.40.10 Damp proof or Water proof compounds 3824.40.90 Other 3824.50 Non-refractory mortars and concretes 3824.50.10 Concretes ready to use known as "Ready-mix concrete (RMC)" 3824.50.90 Other 8. The Appellant submitted that the 'S1KA Block Joining Mortar' has no refractory property and it is not used to withstand extreme heat or high temperatures. It is also not used for surfacing preparation for facades, indoor walls, floors, ceilings, etc., it is only used for joining masonry units like AAC blocks, Concrete blocks, fly ash bricks, etc., which qualifies it to be classified under Tariff Head 3824 50 90. 9. From the written submission ..... X X X X Extracts X X X X X X X X Extracts X X X X
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