AAC Bricks Cannot Be Classified as ‘Ceramic Products’ under Chapter 69: AAR [Read Order]

The Authority for Advance Ruling (AAR), Gujarat held that Autoclaved Aerated Concrete (AAC) bricks are not classifiable as ceramic products under Chapter 69 of the Customs Tariff Act, 1975 and are instead classifiable under Heading 6810 covering articles of cement, concrete or artificial stone.

The applicant, Eco Green AAC Products Pvt. Ltd., is engaged in manufacture and supply of AAC bricks and blocks used in construction activities as substitutes for conventional burnt clay bricks.

The applicant sought an advance ruling on whether AAC bricks manufactured by it satisfy the requirements of Chapter 69 and are liable to classification under Heading 6904 covering “building bricks”.

According to the applicant, AAC bricks are commercially understood and used in the same manner as conventional building bricks and are therefore classifiable under Tariff Item 69041000. Reliance was also placed on dictionary meanings, BIS standards and judicial precedents including CCE v. Simplex Mills Co. Ltd.(2005) and Assistant Collector of Central Excise v. Guntur Tobacco Company (1991).

The applicant further submitted test reports and manufacturing process details to contend that the products possess ceramic characteristics and satisfy the conditions prescribed under Chapter 69 relating to ceramic products.

However, the jurisdictional officer opposed the classification under Chapter 69 contending that AAC bricks manufactured through autoclaving process are not produced through firing at high temperatures as contemplated under Chapter 69 of the Customs Tariff Act, 1975.

After examining the manufacturing process, HSN notes and test reports, the Authority observed that AAC bricks contain cement, fly ash and silica materials and are produced through steam curing rather than firing process applicable to ceramic products. The Authority further held that the products do not possess the essential characteristics of ceramic goods and therefore cannot be classified under Chapter 69.

The AAR further observed that Heading 6810 specifically covers articles of cement, concrete or artificial stone and that AAC bricks manufactured by the applicant are appropriately classifiable under the said heading.

The Bench comprising Vishal Malani (Member CGST) and Sushma Vora (Member SGST) ruled that AAC bricks manufactured and supplied by the applicant are classifiable under Heading 6810 and not under Heading 6904 of the Customs Tariff Act, 1975.

Accordingly, the Gujarat AAR ruled that AAC bricks manufactured and supplied by the applicant are classifiable under Heading 6810 as articles of cement, concrete or artificial stone and not as ceramic products under Chapter 69.

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