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Case Law Details

Case Name : In re Hafele India Private Limited (GST AAR Maharashtra)
Appeal Number : No. GST-ARA-10/2017/B-13
Date of Judgement/Order : 20/03/2018
Related Assessment Year :
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In re Hafele India Private Limited (GST AAR Maharashtra)

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.

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