TMI Blog2018 (10) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and mixing of quartz and quartzite minerals of different sizes and where no external binders are added to such mixture - It was noted that explanatory notes to the HSN of Heading 3816 covers certain preparations (e.g. for furnace linings), with an added refractor binder - Many of the products of this heading also contain non-refractory binders such as hydraulic binding agents, therefore, to qualify for classification under heading 3816, refractory binder is required to be added to such powdered (grained quartz/ quartzite mixture. Since no refractory binder is added to the impugned product, the same is not covered under heading 3816. The issue is decided in the case of COLLECTOR OF C. EX., BHUBANESWAR VERSUS MAYUR CHEMICAL INDUSTRIES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the above observations, the application is admitted to pronounce advance ruling. 1. SUBMISSION OF THE APPLICANT: 1. M/s. Raghav Productivity Enhancers Ltd. is a registered manufacturer cum supplier under GST, engaged in the manufacture of Ramming Mass. Ramming Mass is used in the lining of induction furnaces. 2. The two basic ingredients used in the manufacture of Ramming Mass are the Quartz granules and Boric Acid. Further, the Quartz forms a major part of the composition of final product i.e. Ramming Mass whereas Boric Acid is mixed in a very minor ratio though it forms a major part of the cost of the final product. 3. The process of manufacture of Ramming Mass is as follows: a. The process starts with extractio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s paying GST @ 18% on Ramming Mass manufactured and supplied by them and classifying them under HSN 3816. 2. Question(s) on which Advance Ruling is required 1. Classification and applicable rate of GST on Ramming Mass used in lining of induction furnace. 2. Classification and applicable rate of GST on crushed quartz stones used in lining of furnace through claimed as not containing Boric Acid. 3. Statement of Applicant s Interpretation of Law/ Facts 1. Applicant has stated that simply crushed quartz stones without the mixing of binding material i.e. Boric Acid is classifiable under HSN 2506 in Schedule I chargeable to 5% GST. This normally is used in manufacturing of glass. However, such crushed quartz stones withou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a sample copy of invoices of Boric Acid, Ramming Mass and Quartz which he did on a later date. 4.2 The jurisdictional officer in his comments has stated that as per business parlance Ramming Mass consists of crushed quartz powder in unison with boric acid added in a specified ratio which falls under chapter heading no. 3816 and attracts 18% of GST. Further he has stated that crushed Quartz stone is to be classified under chapter heading no. 2506 and to be taxed at 5% under GST. He stated that crushed quartz stone on standalone basis cannot be used as a lining of furnace and qualify the Tariff head no. 2506 and GST rate of 5%. 5. Findings and Conclusion: a) Dealer is a manufacturer of Ramming Mass. Ramming Mass is used as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessees classify the aforesaid goods under chapter heading 2506 of CETA, whereas the zone is of the preliminary view that goods are more appropriately classifiable under Chapter heading 3816 of CETA in view of Chapter Note 1 of Chapter 25. Discussion Decision The issue was deliberated in the Conference where, two heads of classification viz., CETH 2506 and 3816 were discussed in case of the product Ramming Mass of the kind obtained by crushing/ grinding and mixing of quartz and quartzite minerals of different sizes and where no external binders are added to such mixture. It was noted that explanatory notes to the HSN of Heading 3816 covers certain preparations (e.g. for furnace linings)..., with an added refractor bin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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