Classification of goods—M/s. Brakes India Private Limited has sought classification of the product ‘Disc Brake Pads’ manufactured and supplied by them and the question sought is.
What is the appropriate classification of ‘Disc Brake Pads’ under GST? Whether ‘Disc Brake Pads’ supplied by the Applicant is covered under Sl.No. 170 of Schedule IV of Notification 1/2017 dated 28.06.2017- Integrated Tax (Rate) (hereinafter referred to as the GST Tariff Notification), i.e., under Tariff Heading 8708 attracting GST at 28% or under Sl.No.182 B of Schedule III of the Rate Notification i.e., under Tariff Heading 6813 attracting GST Rate of 18%?
2. M/s. Brakes India Private Limited has stated that Disc Brake Pads are commonly used in the brake assembly of motor vehicles also known as caliper brakes, to cause friction, which would assist the vehicle to slow down or stop. Disc Brake Pads contain two elements, i.e., one, the Disc Pad which is made of friction materials and the backing plate made of steel which is coated with an adhesive. These two elements when brought together, form what is referred to as the ‘Disc Brake Pads’. The two-main processes that the Disc pads (friction material) and the backing plate undergo are the process of using adhesives to bond the friction material to the backing plate and the process of molding, where the Disc Pads are pressed, heated and cured. Every backing plate has two cavities and the finished Disc Brake Pad would show that the aforesaid processes of heating, applying pressure and curing, 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.
Held that :- ‘Disc Brake Pads’ manufactured and supplied by the Applicant are classified under Heading 87083000 and covered under S. No. 170 of Schedule IV of Notification No. 01/2017 CT (Rate) dated 28.06.2017 and Sl.No. 170 of Schedule IV of G.O. (Ms) No. 62 dated 29.06.2017 No. II(2)/CTR/532(d-4)/2017 attracting 14% CGST/14% SGST respectively. [2018] 3 TAXLOK.COM 089 (AAR-Tamil Nadu)