TMI Blog2018 (12) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... functional part on baking, grinding, machining and powder coating fitted on steel plate. This finished product is ready for being fixed in the brake system of cars - the impugned product is not covered by chapter Heading 6813. The undisputed fact of the present case is that Disc Brake Pads are being used in Braking System of passenger cars and SUV Vehicles - further, DBP is not excluded from the aforesaid chapter Notes and are exclusively used as parts of motor vehicles of heading 8701 to 8707 and as such merit classification chapter heading 8707. Ruling:- The Product i.e. Disc Brake Pads falls under chapter heading 8708 and would be liable to tax @28% (14% each under CGST and MGST Act). - GST-ARA-10/2018-19/B-66 - - - Dated:- 11-7- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omes under 18% List and Motor Vehicle Brakes and Parts classified under head 8708 comes under 28% List. Detail note of the Activities carried out by the company in the year 2018-19 Manufacturing Activities The main manufacturing activity of our company is to manufacture DISC BRAKE PADS for passenger SUV Vehicles Manufacturing process: Raw Materials Mixing Hot Moulding Baking Grinding / Machining Powder Coating Inspection - Fittment- Packing - Dispatch Details of Raw Materials 1. Fibers - Mainly fibers such as Rock wool, steel wool and Polyester etc. 2. Binders - Phenolic Resin 3. Fillers - Non organic chemicals such as Barium Sulphate, china clay, Whiting etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake Liner for Passenger Cars, SUVs and MUVs. The dealer is Joint Venture with Cutting edge Technology from ADVICS JAPAN. These DBP are sold in SETS and not in Single manner. The dealer's Company campus photo at Bhalgan, Beed Road, and Dist. AURANGABAD is enclosed herewith for reference. The dealer is bearing GSTIN vide No.27AAFCC4974P1zX. He is also holding HSN CODE 8708. The Classification of goods is Disc Brake Pads (DBP) and their Central Excise Tariff Heading is 8708 Chapter Heading Tariff Item 8708 speaks as under Parts and accessories of the motor vehicles of heading 8701 to 8705 (other than specified Parts of tractors) The dealer has also submitted manufacturing Activities i.e. FLOW CHART from Raw Material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion was admitted and final hearing was held on 04.07.2018, Sh. Mohan Parashar, G. M. Accounts along with Sh. M Gandhi, taxation Manager appeared and stated that written submissions as made earlier and in their ARA may be considered and issue be decided on merits please. The jurisdictional officer, Sh. C K Joshi, State Tax Officer (AUR-VAT-C-007) Aurangabad appeared and made written submissions. 05. OBSERVATIONS We have perused the records on file and gone through the facts of the case and the submissions made by the applicant and the department. It is observed that as below: Through this application applicant would like to know from this authority the appropriate HSN code of the Disc Breake Pad sold by them. As per applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als 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 TEXTILES OR OTHER MATERIALS 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 TEXTILES OR OTHER MATERIALS 6813 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforesaid Explanatory Notes it is evident that only friction material in different shape is classifiable under heading 6813 and that those mounted are specifically excluded from the purview of said heading; Considering above Tariff heading we are now required examine the product to be classified by us. Applicant is a manufacturer of Disc Brake Pads which are used in Braking System of Passenger cars. From the manufacturing process flow chart we find that functional part on baking, grinding, machining and powder coating fitted on steel plate. This finished product is ready for being fixed in the brake system of cars. Considering above fact we have no doubt in our mind that the impugned product is not covered by chapter Heading 6813. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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