In re Dipakkumar Ramjibhai Patel (GST AAAR Gujarat)
The product Fly Ash Bricks manufactured and supplied by Dipakkumar Ramjibhai Patel (M/s. Mahalaxmi Cement products and Timber) are classifiable under Tariff item No. 68159910 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975). The said product will be covered under Sr. No. 177 of Schedule-I of Notification No.01/2017-Central Tax(Rate) dated 28.06.2017 (as amended from time to time) upto 14.11.2017 and under Sr.No. 453 of Schedule-III of Notification No.01/2017-Central Tax(Rate) dated 28.06.2017 (as amended from time to time) w.e.f. 15.11.2017, for the reasons discussed hereinabove. Applicability of GST rate on the said product would be 12% GST (6% SGST + 6% CGST) upto 14.11.2017 and 18% GST (9% SGST + 9% CGST) with effect from 15.11.2017 as per Notification No: 01/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time), for the reasons discussed hereinabove.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, GUJARAT
The appellant M/s. Dipakkumar Ramjibhai Patel (Shree Mahalaxmi Cement products and Timber), is a proprietorship concern, engaged in manufacturing of Fly Ash Bricks and Fly Ash Blocks falling under SH 6815 of the First Schedule to the Customs Tariff Act, 1962.
2. The appellant had filed an application for Advance Ruling on date 22.01.2019 before the Gujarat Authority for Advance Ruling (herein after referred to as the ‘GAAR’), wherein they gave the details of the raw materials used in the manufacture of ‘Fly Ash Bricks’ and ‘Fly Ash Blocks’ as under:
(a) Cement (5% to 20%).
(b) Fly Ash (40% to 60%).
(c) Sand (35% to 55%).
(d) Lime (5% to 20%).
(e) Water- (As per requirement).
3. The appellant had also submitted that the above products are manufactured from the mixer which is prepared by mixing the aforesaid raw materials in desired proportion, that the HSN code of both the products is 68159910 and that they are paying GST @ 5% on ‘Fly Ash Bricks’ and 12% on ‘Fly Ash Blocks’ till notification No: 24/2018-Central Tax (Rate) date 31.12.2018. The appellant had also enclosed copies of Sales invoice in respect of Fly Ash Bricks and Fly Ash Blocks. They have submitted the following question for the purpose of advance ruling:
“Whether supply of Fly Ash Bricks and Fly Ash Blocks are covered under Chapter heading 68159090 and liable to taxed @ 5% and @ 12% respectively under the GST Act?”
4. After going through the application for Advance Ruling of the appellant, their submission as well as the records of the case, the GAAR found as under:
(i) That ‘Fly Ash Bricks’ is specifically covered under Tariff item no.68159910 whereas ‘Fly Ash Blocks’ are covered under the Tariff item no. 68159990(others) of the First Schedule to the Customs Tariff Act, 1975(51 of 1975).
(ii) That both Fly Ash Bricks and Fly Ash Blocks appear at Sr. No.177 in Schedule-II of the Notification No:01/2017-Central Tax(Rate) dated 28.06.2017 on which the applicable rate of GST is 12% (6% SGST + 6% CGST).
(iii) Notification No:01/2017-Central Tax(Rate) dated 28.06.2017 has been amended vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017 (effective from 15.11.2017) wherein the entry ‘Fly Ash Bricks’ was omitted from Sr.No.177 in Schedule-II of above Notification. As per Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017 (effective from 15.11.2017), Sr.No.225A was inserted after Sr.No.225 in Schedule-I of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 which reads as under:
