diff --git a/engines/instance_verification/lib/instance_verification/providers/example.rb b/engines/instance_verification/lib/instance_verification/providers/example.rb
index 1d49f92d9..46bca7fc0 100644
--- a/engines/instance_verification/lib/instance_verification/providers/example.rb
+++ b/engines/instance_verification/lib/instance_verification/providers/example.rb
@@ -50,7 +50,9 @@ def payg_billing_code?(iid, identifier)
     return true if (identifier.casecmp('sles_sap').zero? && SLES4SAP_PRODUCT_IDENTIFIER.include?(instance_billing_info[:marketplace_code]))
   end
 
-  def basic?
-    false
+  def allowed_extension?
+    # method to check if a product (extension) meet the criteria
+    # to be acivated on SCC or not, i.e. LTSS in Azure Basic VM
+    true
   end
 end
diff --git a/engines/instance_verification/spec/requests/api/connect/v3/systems/products_controller_spec.rb b/engines/instance_verification/spec/requests/api/connect/v3/systems/products_controller_spec.rb
index f3e2940c6..da9f6bc4a 100644
--- a/engines/instance_verification/spec/requests/api/connect/v3/systems/products_controller_spec.rb
+++ b/engines/instance_verification/spec/requests/api/connect/v3/systems/products_controller_spec.rb
@@ -38,7 +38,7 @@
 
         it 'class instance verification provider' do
           expect(InstanceVerification::Providers::Example).to receive(:new)
-            .with(be_a(ActiveSupport::Logger), be_a(ActionDispatch::Request), payload, nil).and_call_original
+            .with(be_a(ActiveSupport::Logger), be_a(ActionDispatch::Request), payload, nil).and_call_original.at_least(:once)
           allow(File).to receive(:directory?)
           allow(Dir).to receive(:mkdir)
           allow(FileUtils).to receive(:touch)
@@ -71,13 +71,17 @@
         end
 
         context 'when verification provider returns false' do
+          # let(:plugin_double) { instance_double('InstanceVerification::Providers::Example') }
+
           before do
             stub_request(:post, scc_activate_url)
             .to_return(
               status: 200,
               body: { error: 'Unexpected instance verification error has occurred' }.to_json,
               headers: {}
-            )
+              )
+            # allow(InstanceVerification::Providers::Example).to receive(:new).and_return(plugin_double)
+            # allow(plugin_double).to receive(:allowed_extension?).and_return(true)
             post url, params: payload, headers: headers
           end
 
@@ -113,7 +117,7 @@
 
         it 'class instance verification provider' do
           expect(InstanceVerification::Providers::Example).to receive(:new)
-            .with(be_a(ActiveSupport::Logger), be_a(ActionDispatch::Request), payload, nil).and_call_original
+            .with(be_a(ActiveSupport::Logger), be_a(ActionDispatch::Request), payload, nil).and_call_original.at_least(:once)
           allow(File).to receive(:directory?)
           allow(Dir).to receive(:mkdir)
           allow(FileUtils).to receive(:touch)
@@ -123,7 +127,7 @@
 
       context 'when system has hw_info' do
         let(:instance_data) { 'dummy_instance_data' }
-        let(:system) { FactoryBot.create(:system, :payg, :with_system_information_az, instance_data: instance_data) }
+        let(:system) { FactoryBot.create(:system, :payg, :with_system_information, instance_data: instance_data) }
         let(:serialized_service_json) do
           V3::ServiceSerializer.new(
             product.service,
@@ -188,7 +192,7 @@
         let(:instance_data) { 'dummy_instance_data' }
         let(:system) do
           FactoryBot.create(
-            :system, :payg, :with_system_information_az, :with_activated_product, product: base_product, instance_data: instance_data
+            :system, :payg, :with_system_information, :with_activated_product, product: base_product, instance_data: instance_data
           )
         end
         let(:serialized_service_json) do
@@ -340,8 +344,9 @@
 
           before do
             allow(InstanceVerification::Providers::Example).to receive(:new)
-              .with(nil, nil, nil, instance_data).and_return(plugin_double)
+              .and_return(plugin_double)
             allow(plugin_double).to receive(:parse_instance_data).and_return({ InstanceId: 'foo' })
+            allow(plugin_double).to receive(:allowed_extension?).and_return(true)
 
             allow(InstanceVerification).to receive(:update_cache).with('127.0.0.1', system.login, product.id)
             FactoryBot.create(:subscription, product_classes: product_classes)
@@ -380,8 +385,9 @@
 
           before do
             allow(InstanceVerification::Providers::Example).to receive(:new)
-              .with(nil, nil, nil, instance_data).and_return(plugin_double)
+              .and_return(plugin_double)
             allow(plugin_double).to receive(:parse_instance_data).and_return({ InstanceId: 'foo' })
+            allow(plugin_double).to receive(:allowed_extension?).and_return(true)
 
             allow(InstanceVerification).to receive(:update_cache).with('127.0.0.1', system.login, product.id)
             FactoryBot.create(:subscription, product_classes: product_classes)
@@ -414,7 +420,7 @@
 
         it 'class instance verification provider' do
           expect(InstanceVerification::Providers::Example).to receive(:new)
-            .with(be_a(ActiveSupport::Logger), be_a(ActionDispatch::Request), payload, nil).and_call_original
+              .and_call_original.at_least(:once)
           allow(File).to receive(:directory?)
           allow(Dir).to receive(:mkdir)
           allow(FileUtils).to receive(:touch)
@@ -514,8 +520,9 @@
 
       before do
         allow(InstanceVerification::Providers::Example).to receive(:new)
-          .with(nil, nil, nil, instance_data).and_return(plugin_double)
+          .and_return(plugin_double)
         allow(plugin_double).to receive(:parse_instance_data).and_return({ InstanceId: 'foo' })
+        allow(plugin_double).to receive(:allowed_extension?).and_return(true)
 
         FactoryBot.create(:subscription, product_classes: product_classes)
         stub_request(:post, scc_activate_url)
diff --git a/engines/scc_proxy/lib/scc_proxy/engine.rb b/engines/scc_proxy/lib/scc_proxy/engine.rb
index 8a744a036..95be2a642 100644
--- a/engines/scc_proxy/lib/scc_proxy/engine.rb
+++ b/engines/scc_proxy/lib/scc_proxy/engine.rb
@@ -373,11 +373,8 @@ def has_no_regcode?(auth_header)
         protected
 
         def scc_activate_product
-          if (@system.system_information &&
-              JSON.parse(@system.system_information)['cloud_provider'].casecmp('microsoft').zero? &&
-              @product.product_class.downcase.include?('ltss') &&
-              InstanceVerification.provider.new(logger, request, nil, @system.instance_data).basic?
-            )
+          product_hash = @product.attributes.symbolize_keys.slice(:identifier, :version, :arch)
+          unless InstanceVerification.provider.new(logger, request, product_hash, @system.instance_data).allowed_extension?
             error = ActionController::TranslatedError.new(N_('Product not supported for this instance'))
             error.status = :forbidden
             raise error