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    Summary of AAR in Hafele India Private Limited

    Contributed by CA Manindar & Bhavani


    Sl. No


    Name of




    TMI Citation


    AAR State


    Macro Issue

    Whether the product "Caesarstone" imported by the applicant can be classified under


    HSN Code 2506 or 6810?


    The applicant is engaged in importation of Bathroom and Kitchenware fitting and


    Caesarstone Quartz. At the time of importation of Caesarstone Quartz, it is liable to pay


    Basic Customs Duty and IGST and classified under heading 6810. For outward supply of


    goods, it is liable to pay GST and there arises the question of whether it is to be classified


    under heading 2506 or 6810.




    Sr No


    HSN Code



    IGST Rate

























    Quartz (other than natural sands) quartzite,













    whether or not roughly trimmed or merely cut by














    sawing or otherwise in to blocks or slabs of a














    rectangular (including square) shape























    Articles of cement of concrete or of artificial stone













    whether or not reinforces







































    Guiding Principles involved to settle the issue:












    1.  Classification of good under Customs Tariff Act 1975 along with relevant chapter






    notes of Chapter 25 and 68





    1. General Rules of interpretation of the first schedule to the Customs Tariff Act 1975
    2. HSN explanatory notes released by WCO

    Whether the good fits under Heading 2506

    Quartz is combined with polymers and pigments and compacted under intense vacuum and cut into slabs to for the output -ceasarstone.

    The Chapter Note 1 of Chapter 25 clearly states that “------, the headings of this Chapter cover only products which are in the crude state or which have been washed(even with chemical substancese liminating the impurities without changing the structure of the





    product), crushed, ground, powdered, levigated, sifted, screened, concentrated by





    flotation, magnetic separation or other mechanical or physical processes (except





    crystallization), but not products that have been roasted, calcined, obtained by mixing or





    subjected to processing beyond that mentioned in each heading.”





    It is imperative to understand that the composition of Caesarstone contains 93% crushed





    quartz. Quartz is combined with high-quality polyester resins and pigments and is then





    compacted under intense vacuum and pressure into dense and non-porous slabs.





    As per Chapter Note I to Chapter 68 which clearly provides that chapter does not cover





    goods falling under Chapter 25.





    As the manufacturing process is covered under the mechanical process and considering





    Rule 2(a) and Rule 3(b) of General Rules for Interpretation and Chapter Note 1 to Chapter





    25, Caesarstone imported shall be construed as a Quartz and classified under chapter 25.





    By considering the content of Chapter Note 1 to Chapter 25, the goods should not change





    the character of mineral product. In addition to mechanical and physical process, chemical









    process is also involved. Such process carried out is beyond the scope of Chapter Note 1 to





    Chapter 25. Caesarstone is an engineered quartz surface and it is a man made stone or





    artificial stone. Quartz is one of the raw material to produce Caesarstone and addition of





    polymer resins and pigments to the quartz changes the character/structure of mineral










    AA also considereda ruling of Harmonised Tariff Schedule of United States in case of





    Silestone TM wherein the slabs composed of 93% Quartz and 7% of resin binder, it is





    classified under sub heading 6810.99.00 and considered as artificial stone.




    Ruling with

    Caesarstone imported by the applicant is to be classified under HSN code 6810













    On perusal of the Tariff headings of Chapter 25 and Chapter 68, it is clearly evident that a








    processed stone (artificial or natural) will be classifiable under chapter 68 while chapter









    25 covers only natural stones in crude state. Accordingly, no contrary views have been








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