TMI Blog2018 (9) TMI 1337X X X X Extracts X X X X X X X X Extracts X X X X ..... e under CTH 6813 if they are not mounted. But when they are mounted including friction material fixed to a metal plate provided with circular cavities, perforated tongues or similar fittings for disc brakes, these are classified as parts of the machines or vehicles for which they are designed. In the present case, the product consists of a friction material (made up of organic fibers and minerals, graphite) which is bonded with a steel backing plate forming an integrated component. Heading 6813 specifically excludes such mounted brake linings which are rightly classifiable as parts of vehicles for which they are designed - Thus the product to be classified ‘Disk brake Pads’, a part of the motor vehicle, classifiable under Heading 870830 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... du Goods and Service Tax Act. M/s. Brakes India Private Limited, MTH Road, Padi, Chennai 600 050 (hereinafter called as Brakes or Applicant) is engaged in the manufacture of auto components viz., caliper brakes, drum brakes, actuation systems, disc brake pads, valves, rubber hose, ABS and brake fluid for light motor vehicles, S-cam brakes, Hydraulic drum brakes and Electro Magnetic Retarders for commercial vehicles and also Dry and Wet brakes for agricultural tractors. The applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of ₹ 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. M/s. Brakes India Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , would result in a part of the friction material getting extruded into these cavities, thus securing the friction material firmly to the back plate and forming one integrated single piece component. This process assists in preventing detachment and fortifying the bonding of the friction material decisively to the back plate. 3. The Authorized Representative of the Applicant was personally heard in the matter on 29.05.2018. They produced a letter and annexure with brochure of the product, technical data sheet, photograph of the product and videography of the manufacturing process undertaken. They further undertook to submit copies of POs, invoices in 10 days. They furnished sample copies of POs, invoices vide their letter dated 31.05.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een from the sample invoices provided by the applicant that the goods in question are being called at KIT PAD Assembly, Disc Brake and are being classified under 87083900. 5.1 The issue before us is to determine the classification of - Disc Brake Pads, manufactured and marketed by the Applicant. There are two competing classifications where it could be covered: Heading 6813 or 8708. In terms of explanation (iii) and (iv) to Notification No. 1/2017 - Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is evident that Friction Material in the form of discs or pads or any other form consisting of mineral materials with or without textiles are classifiable under CTH 6813 if they are not mounted. But when they are mounted including friction material fixed to a metal plate provided with circular cavities, perforated tongues or similar fittings for disc brakes, these are classified as parts of the machines or vehicles for which they are designed. In the present case, the product consists of a friction material (made up of organic fibers and minerals, graphite) which is bonded with a steel backing plate forming an integrated component. Heading 6813 specifically excludes such mounted brake linings which are rightly classifiable as parts of v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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