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TMI Blog2022 (7) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... eported that the applicant has no infrastructure facility to commence the manufacture of fly ash bricks/blocks and they are not dealing with any material at present. Further, from the photographs furnished along with the report, it is seen that the applicant is housed in a single room of first floor of a building which has been declared as their principal place of business and do not even remotely has the required infra-structure as furnished in the Video submitted by the applicant. It is seen that the applicant has no infrastructural facilities for the proposed manufacture, has not received any orders for supply of the proposed product to be manufactured. Further from the report from the Jurisdiction authority it is evident that the applicant has not substantiated any infrastructure (in terms of raw materials/machinery/demand, etc) based on which such a supply can be undertaken by them. In this scenario, it is held that the application made by them is pre-mature and does not fall under the ambit of the proposed transaction i.e., proposed supply of goods or services. The application is not admitted for ruling as the applicant has not substantiated the proposed transaction wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fly ash bricks and Fly ash blocks. The difference between Fly ash bricks and Fly ash blocks submitted by the applicant is as follows: Bricks are a standard construction material used for all construction purposes, the size and dimension of Bricks are standardized and Bureau of Indian Standard's IS 12894: 2002 lays down the standard specifications and dimensions of Fly Ash Bricks. Fly Ash Blocks are bigger in dimension and size, depending on the nature and purpose of their use. Blocks are manufactured in different sizes, depending upon their use in construction. The applicant proposes to manufacture Fly Ash Blocks of dimension, length - 22.5 CM, width 22.5 CM and height 8 CM. The applicant has stated that the distinction between bricks and blocks is well recognized in the Industry in terms of their dimensions, size and use. 2.2 On interpretation of law, the applicant has stated that Fly Ash Bricks and Fly Ash Blocks are broadly classifiable under Chapter 6815 of the Customs Tariff Act and Fly ash bricks and tiles are specifically covered under 6815 9910, Fly Ash Blocks do not have any specific heading and hence classifiable under 6815 9990 - Others. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard is available for such blocks. 3.2 In response to a reminder from Registry dt. 09.02.2022, applicant vide their email dated 19.02.2022 informed that they had arranged for video recording of the manufacturing process from some other unit after taking their permission and also informed that as they are proposing to do business, they do not have any advance purchase orders as of now and no invoices have been raised. Further, vide their email dated 21.02.2022 the applicant shared the google link for the video recording of the manufacturing process. A notice was issued to the applicant on 02.03.2022 to submit all the documents as required in the hearing held on 19.01.2022. 3.3 In response to the notice issued, the applicant vide their letter dated 03.03.2022 submitted the following details. Finished Product: Fly Ash Block Raw Material its Composition Fly Ash 60% CEMENT 30% M-Sand 10% Water Based on the climate situation MANUFACTURE PROCESS i. Fly Ash received from the thermal power and stored in the xylos. ii. They get the cement from the outsource purchase and sit is stored in the xylos. iii. M-sand or River Sand, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the applicant is of the opinion that even a person proposing to undertake an activity can seek Advance ruling. Further, regarding the copies of PO for proposed supply they have submitted that they have not received any PO from any customers. They have stated that there is huge market potential for flyash blocks in and around Villupuram, hence they have proposed to start manufacturing the same. Also, they have stated that the flyash bricks and blocks industry is highly unorganized and there would be no formal PO and the sales will be based on oral orders. In respect of query regarding the composition which defines blocks and bricks separately, whether any specific IS Standard or International standard is available for such blocks the applicant has submitted that as far as their knowledge, standards are prescribed only for bricks and no such standards are prescribed for blocks. 3.6 On perusal of the facts submitted by the applicant, report from the jurisdictional officer was called for vide letter dt.03.05.2022 on the following details: (i) Infrastructure available as on date for such proposed manufacture of fly ash blocks (ii) Infrastructure available for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Rate) dated 31.12.2018 effective from 01.01.2019. 5. The State Jurisdictional Authority has stated that there are no pending proceedings on the issue raised by the applicant in the Advance Ruling application. 6. We have carefully examined the statement of facts, supporting documents filed by the Applicant, all the additional submissions made during the hearing and thereafter, the verification report and submissions of the Jurisdictional authorities. The applicant has proposed to manufacture Fly Ash Bricks and Fly Ash Blocks . Hence, the applicant has sought Advance Ruling on the following questions: 1. What is the classification under Customs Tariff for Fly Ash Blocks ? 2. What is the rate of GST applicable for Fly Ash Blocks ? As these questions fall under the purview of Section 97(2) of the CGST Act 2017, they are admitted for consideration. 7.1 The applicant has stated that they are proposing to manufacture Fly Ash Bricks and Fly Ash blocks and have applied for ruling for classification of Fly Ash Blocks and the applicable GST. The applicant on their interpretation of law has submitted that the product Fly Ash Blocks would merit classification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be extended for a proposed transaction as well as transaction being undertaken by the applicant. Thus it is clear that the Advance ruling is in respect of a transaction of supply whether proposed or being undertaken. 9. In this scenario, to confirm that the applicant has come up for ruling in respect of proposed transaction, the central jurisdictional officer was required to conduct a verification of the premises under the powers vested vide Section 105 and report on the infrastructural facilities available at the applicant's premises, activities undertaken by the applicant at present and the materials they are dealing with at present. The Jurisdictional officer has verified the premises of the applicant and has reported that the applicant has no infrastructure facility to commence the manufacture of fly ash bricks/blocks and they are not dealing with any material at present. Further, from the photographs furnished along with the report, it is seen that the applicant is housed in a single room of first floor of a building which has been declared as their principal place of business and do not even remotely has the required infra-structure as furnished in the Video submi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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