The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and the MGST Act”] by Hafele India Pvt. Ltd., seeking an Advance Ruling for determination of the correct classification of Caesarstone under the MGST Act.
We have gone through the facts of the case. We have been called upon to decide the classification of the product ‘Caesarstone’ under the GST Act. Whether the product “Caesarstone” imported by the applicant can be classified under HSN Code 2506 or 6810?
It can be seen that the Heading 2506 covers “Quartz”. However, the entry says that the quartz would be one which may or may not be roughly trimmed or merely cut. The process of trimming or cutting is further specified as being by the method of sawing or otherwise. Such quartz would be in blocks or slabs of a rectangular (including square) shape. A look at the information reproduced above reveals that the impugned product is not “quartz” per se. “Quartz” is one of the raw materials to produce the impugned product which is an engineered quartz surface and which has use as an attractive, versatile, and distinctive finish for residential, commercial and institutional buildings. Such a finished product containing polyester / polymer resins and pigments alongwith quartz is but certainly not envisaged by the description of the Heading 2506. Any arguments about composition of quartz in the impugned product being about 90% would lead to no different inference than the one had in the preceding sentence. It would be far-fetched a proposition to say that the impugned product surface containing quartz as its major raw material is covered by the natural quartz as falling in the Heading 2606. What we say finds confirmation from the Harmonized Commodity Description and Coding System Explanatory Notes (HSN) Notes of Chapter 25
Chapter 25 covers the naturally occurring quartz which has undergone changes without changing the structure of the product. The way the impugned product comes into existence should leave no doubt that the same would not be covered by the Chapter 25 and the Heading 2506. The rules for interpretation of the Customs Tariff would not apply herein as the Chapter 25 specifically excludes goods of the nature as the impugned product – the impugned product would not be covered by the Heading 2506.
Entire description as appearing in the Customs Tariff Heading 6810 has been taken for the purposes of the GST entry. It, therefore, means that all item falling in the Customs Tariff Heading 6810 would fall in the description against the Heading 6810 for the purposes of the schedule entry under the GST Act. Now, we see that the Heading covers artificial stone.
The impugned product is an article made from artificial stone. It is a product made using artificial or engineered stone. The product certification explains things, beyond doubt – It can, therefore, be understood as to why the impugned product is being cleared under the Heading 6810.
We have also found a Ruling in respect of the product classification of Silestone TM (as seen above) agglomerated stone slabs under the Harmonized Tariff Schedule of the United States (HTSUS). The information about the product was thus – The slabs are composed of 93% quartz and 7% resm binder. After ‘he slabs are imported. they are sold only to U.S distributors who use then to produce various counter tops. vanities and fireplace surrounds. It was held that the agglomerated quartz sheets are classified under subheading 6810.99.00, HTSUS, which provides for other articles of artificial stone.
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
Q. Whether Caesarstone imported by the applicant can be classified under HSN code 2506 or 6810?
A. Caesarstone imported by the applicant is to be classified under HSN code 6810.