TMI Blog2018 (6) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... be classifiable under Chapter Heading 8708. Having regard to the finding that the goods in question cannot but be regarded as parts of automobiles, it has to be held that they are suitable for use primarily with articles “of Chapter Heading Nos. 8701 to 8705. It follows that the goods in question cannot be treated as falling under Chapter Heading No. 6318 and that they can properly be classified under Chapter Heading No. 8708 of the GST Tariff 2017 - Further, v Since the good in question are classifiable under Chapter Heading 8708, accordingly applicant is liable to pay GST applicable under the said Chapter Head which is 28% as on date. Ruling:- Disc Brake Pads and Shoes are required to be classified under subheading 8708 of GST Tariff, as other parts and accessories of the motor vehicles of headings 8701 to 8705 - applicable rate of GST is 28% as on date. - Ruling No. 02/2017-18 In Application No. 03/2017-18 - - - Dated:- 14-3-2018 - MR VIPIN CHANDRA (MEMBER) AND AMIT GUPTA (MEMBER) For The Applicant : Shri Vipil Dawar RULING 1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 and the rules made thereunder filed by M/s In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he chapter 6813 there is entry which specify that if friction material is not mounted, in such scenario it falls under 6813 otherwise not. However certain manufacturer, by deeming that this mounting means mounting on the brake system, therefore the disc brake pads 85 brake shoes manufactured by them fall under the category of not mounted and accordingly merit classification under HSN 6813. But in fact such- pad/shoe (containing friction material) are bonded on a metal plate for being fixed in the brake system therefore, it is like mounted on a plate, therefore, not eligible to be classified under HSN 6813. 7.1 Question before authority is to determine whether the disc brake pads brake shoes manufactured by the applicant deserve classification under Chapter 6813 (Friction material and articles thereof) or under Chapter 8708 of the GST Tariff (which deals with parts and accessories of the motor vehicle). The said chapter heads are reproduced as under: 6813:Friction material and articles thereof (for example , sheets, rolls, strips, segments, discs, washers, pads ) not mounted, for brakes, for clutches or the like, with a basis of asbestos, of other mineral substances or of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s parts and accessories of motor vehicles of headings 8701 to 8705, provided the parts and accessories fulfil the following conditions: (i) They must be identifiable as being suitable for use solely or principally with the above-mentioned vehicles; (ii) They must not be excluded by the provisions of Notes to Chapter 87 (iii) They must not be more specifically included elsewhere in the nomenclature... 7.6 The Disc Brake Pads and Shoes are not excluded by aforesaid Chapter Notes, and are dedicated and used as parts of motor vehicles of headings 8701 to 8705. Moreover, the said items are not more specifically provided for elsewhere in the GST Tariff. 7.7 For the purposes of classification under. Chapter Heading 87.08, the test to be applied is: whether the goods are suitable for use solely or primarily with, articles of Chapter Heading Nos. 8701 to 8705; if the answer is in the affirmative, the goods will be classifiable under Chapter Heading 8708. Having regard to the finding that the goods in question cannot but be regarded as parts of automobiles, it has to be held that they are suitable for use primarily with articles of Chapter Heading Nos. 8701 to 8705. It follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 88; and (c) it must not more specifically be covered elsewhere in the Tariff; (e) As regards to the product in question- Disk Brake Pads and Brake Shoes for automobiles, it is observed that there seems no dispute as regards to the fact that they are not excluded vide said Section Note 2 of Section XVII and that they are meant solely or principally for use in the braking system of automobiles. The only point of discussion, then, remains as to whether they could be taken out from the purview of Section XVII for the reason that they are more specifically classified elsewhere in the Tariff; (f) The contesting heading, as stated by the applicant, is 6813 of the Tariff. Chapter 68 falls within Section XIII of the Tariff and this Section does not have any Section Notes. Heading 6813 reads Friction material and articles thereof (For example, sheets, rolls, strips, segments, discs, washers, pads), not mounted, for brakes, for clutches, or the like, with the basis of asbestos, of other mineral substances or of cellulose, whether or not combined with textile or other materials ; (g) It has been stated by the applicant that the Disk Brake Pads and Brake Shoes , containing fri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake Shoes for different models of four/two wheeled automobiles such as Santro, Alto, Wagon R, Swift, Bolero, Scorpio, Tata Sumo, etc. [Four Wheeler], Splendor, Champion, Pulsar, TVS Fiero etc. [Two Wheelers]. Various ingredients such as Kevlar, Mineral wool, Barytes powder, steel wool, phynolic resin, cellulose etc. are mixed in a predetermined ratio to derive the desired friction material in powdered form. Their other main input is a metal sheet designed according to compatibility of the braking system of the vehicle upon which it is to be fitted to. The metal plate is shot blasted to attain the desired surface/strength. The friction material in powder form is poured into a mould/die and along with the metal sheet it is fed into the moulding machine where the powder takes shape of a mould and gets fixed upon the metal plate. This product there after undergoes certain curing and finishing process to attain the desired marketable condition. The product [ disk brakes pads and brake shoes for two/four wheelers] is then packed in retail packs and in secondary packing in which it is cleared from the factory; (j) In view of the foregoing report, authority observes that the disk ..... X X X X Extracts X X X X X X X X Extracts X X X X
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