TaxTMI 
TaxTMI 
2018 (6) TMI 369
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....goods or services or both" and "determination of the liability to pay tax on any goods or services or both" respectively. In the present case applicant has requested for advance ruling in respect of classification and rate of applicable GST on "Disc Brake Pads & Brakes Shoes" being used in automobiles. Therefore, in terms of said Section 97(2)(a) and (e) of CGST/SGST Act, 2017, the present application is hereby admitted. 4. Report dated 16.01.2018 was also submitted by Deputy Commission-II, SGST, Dehradun in which he reported that the products in question in his opinion, are required to be classified under Chapter head 6813. However, Assistant Commissioner, CGST, Dehradun in his report dated 27.2.2018 has reported that the said product is required to be classified under Chapter Head 8708. 5. Accordingly opportunity of personal hearing was granted to the applicant and department on 15.02.2018. Shri Vipul Dawar appeared for personal hearing on the appointed date and submitted that before GST regime, they were classifying the said product under chapter 6813 of the Central Excise Tariff but after GST regime advance ruling is requested to clarify whether the product in question is req....
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....Explanatory Notes, it is proper to use the principal that tariff terms are construed in accordance with their common and commercial meaning. "Basis" has been defined as follows: (a) The main constituent, fundamental ingredient. The Compact Edition of the Oxford English Dictionary (1987), pg, 173. (b) The principal component parts of a thing. Black's Law Dictionary (1990); pg. 151. (c) The chief component or fundamental ingredient. Webster's II New Riverside University Dictionary (1988), pg. 156. (d) The principal component of something. Webster's Ninth New Collegiate Dictionary (1983), pg. 134. 7.4 Based on the definitions of "basis" and a reading of 6813, we find that the phrase "with a basis of as found in the article description to heading 6813, GST Tariff, requires that asbestos, cellulose or other mineral substance identified in that article description be the principal or fundamental substance in the article. In the present case Kevlar , Mineral Fibre, Cellulose, Phenolic Resin, Steel Wool, Metal Fibre, graphite and Barium Sulphate are the material used by the applicant for manufacture of Disc Brake Pads and Shoes. As per the applicant out of these items Kevlar , Min....
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....olely or primarily with articles of Chapter Heading Nos. 8701 to 8705; accordingly they are classifiable under chapter heading 8708.' 7.9 Irrespective of aforesaid we also find that products being manufactured by the applicant are meant to be used in' the braking system of vehicles of heading 8701 to 8705 of the Tariff. The parts and accessories of such vehicles are covered in heading 8708 of the Tariff; (a) The said Chapter 87 falls under Section XVII of the Tariff Section Note 2 to Section XVII (covering Chapter 86 to 89) specifically excludes certain articles from the purview of the expression "parts" and "parts and accessories". I find that goods of Chapter 68 do not find mention in the listed articles in the said Note 2; (b) Section Note 3 of Section XVII further excludes articles which, though may be usable as parts and accessories of goods covered under Chapter 86 to 88, are not "suitable for use solely or principally with the articles of those Chapters"; (c) Further, in the light of General principles of interpretation of the Tariff, parts and accessories even if identifiable as meant for the articles of this Section, would stand excluded if they are covered more spe....
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.... a different shape and its use no more remain t wide-ranging (as a friction material) but becomes further contoured (such as a brake pad in the instant case). Accordingly, it is observed that "Disk Brake Pads" and "Brake Shoes" which are in form of friction material already mounted on metal plate is not be covered under heading 6813 of the Tariff; (h) Explanatory Notes to the Harmonized System of Nomenclature, pertaining to heading 6813 of the Tariff too have been perused and give a similar interpretation. The relevant portion reads as follows:- " ... Owing to its high friction coefficient and its resistance to heat and wear, this material is used for lining brake shoes, clutch disc, etc., for vehicles of all kinds, cranes, dredges or other machinery... According to the particular use for which it is intended, friction material of this heading may be in the form of sheets, rolls, strips, segments, discs, rings, washers, pads or cut to any other shape... ..... The heading excludes: (a)... (b) Mounted brake lining (including friction material fixed to a metal plate provided with circular cavities^ perforated tongues or similar fittings, for disc brak....