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TMI Blog2018 (7) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... Parts, whether to fall under ITC HSN 87083000 attracting 28% GST or ITC HSN 6813 attracting 18% GST. Report of the Jurisdictional Officer The Jurisdictional officer has submitted in his report dated 23.02.2018 that the ITC HSN 6813 attracting GST (9% CGST + 9% SGST) is for Frictional Material and articles thereof not mounted for brakes and the ITC HSN 87083000 attracting 28% GST (14% CGST + 14% SGST) is for Brakes and Servo- Brakes and parts thereof. It has further been reported that the applicant manufactures Brake Pads by pasting frictional material on the sheet metal back plate. The process of pasting this frictional material is by the process called 'mounting'. Since the applicant manufactures Brake Pads by mounting Friction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 21.03.2018 which is being released today. DISCUSSIONS AND FINDINGS OF THE AUTHORITY To understand the controversy the relevant headings under ITC HS are reproduced below: - Sr. No. ITC HSN Description Remarks 1. ITC HS 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 Cellulose, Whether Or Not Combined with textile or other materials. The heading specifically excludes mounted friction material and articles thereof for brakes. 2. ITC HS 8708 Parts and accessories of motor vehicles of headings 8701 to 8705 3. ITC HS 87083000 Brake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under:- "The Brake Pads, i.e., friction material mounted on metal plate, manufactured by the applicant for motor vehicles of headings 8701 to 8705 (other than specified parts of tractors) are correctly classifiable under HSN 87083000 of the Custom Tariff Act. In view of the notification no. 1/2017-Central Tax (Rate), dated 28.06.2017, as amended from time to time and the corresponding State tax notification no. 35/ST-2, dated 30.06.2017 as amended from time to time, the brake pads for use as brake assembly and its parts thereof for tractors attract 18% GST (9% CGST+9% HGST) and the brake pads manufactured as parts and accessories of motor vehicles of heading 8701 to 8705 (other than tractors) attract 28% CST (14% CGST+14% HGST). " Order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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