Order Date -  08 May 2026

Facts -

• M/s. Eco Green AAC Products Pvt. Ltd. manufactured and supplied AAC bricks/blocks used in construction as a substitute for conventional clay bricks. The company sought an advance ruling regarding the correct GST classification of its product.
• The petitioner argued that AAC bricks should be classified under Tariff Item 69041000 as “building bricks” because they are commercially known and used as bricks in the construction industry. The applicant also relied on dictionary meanings, trade parlance, BIS standards, and judicial precedents.
• During the hearing, the Authority directed the applicant to provide the manufacturing process and test reports. The applicant thereafter submitted technical reports claiming that AAC blocks possessed ceramic characteristics due to their siliceous composition and heat treatment process.
• The Authority compared the manufacturing process, HSN explanatory notes, Chapter Notes to Chapter 69, and the chemical composition of AAC blocks with ceramic bricks before deciding the classification dispute.

Issue -

• Whether AAC bricks/blocks manufactured by the applicant are classifiable under HSN 69041000 as ceramic “building bricks” or under HSN 6810 as articles of cement/concrete/artificial stone?

Order -

• The Authority observed that merely because AAC blocks are commercially referred to as “AAC bricks” and used as substitutes for conventional bricks does not automatically bring them under Heading 6904. It noted that Heading 6810 itself specifically contains an entry for “building blocks and bricks,” thereby weakening the applicant’s argument that Heading 6904 alone is the specific entry.
• The Authority examined Chapter Note 1 to Chapter 69 and emphasized that ceramic products must be “fired after shaping” and products heated below 800-C are excluded from Chapter 69. On examining industry practices and technical material, it found that AAC blocks are generally autoclaved at temperatures around 180–220-C and not at 800-C to 1500-C as claimed by the applicant.
• The Authority further held that the manufacturing process of AAC blocks closely resembled the process described under HSN Heading 6810 dealing with sand-lime articles steam-treated in autoclaves. Therefore, the process itself supported classification under Heading 6810 instead of Heading 6904.
• After comparing the chemical composition of AAC blocks with standard ceramic bricks, the Authority found substantial differences in constituents such as alumina and calcium oxide. It concluded that AAC blocks do not satisfy the characteristics of ceramic products and therefore cannot be classified under Chapter 69.