IN RE: M\/s. COMPO ADVICE INDIA PRIVATE LIMITED
GST
2018 (12) TMI 648 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 188 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 11-7-2018
GST-ARA-10\/2018-19\/B-66
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
\nPROCEEDINGS
\n(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
\nThe present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by COMPO ADVICE INDIA PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the following question.
\nOur product is known as Disc Brake Pads “DBP” is made up of High Capacity Friction Material, both Fibers and Minerals and separately rivet on to Brake Assembly of Motor Vehicles.
\nAt the outset, we would like <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nufacture DISC BRAKE PADS for passenger & SUV Vehicles = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tting edge Technology from ADVICS JAPAN. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ctional officer, Sh. C K Joshi, State Tax Officer (AUR-VAT-C-007) Aurangabad appeared and made written submissions. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tches or the like, with a basis of asbestos, of other mineral substances or of cellulose, whether or not combined with textiles or other materials Containing asbestos Brake lining and pads Asbestos friction materials Other = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n he purview of said heading; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" IN RE: M\/s. COMPO ADVICE INDIA PRIVATE LIMITEDGST2018 (12) TMI 648 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 188 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AARDated:- 11-7-2018GST-ARA-10\/2018-19\/B-66 GSTSHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services … Continue reading “IN RE: M\/s. COMPO ADVICE INDIA PRIVATE LIMITED”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15477","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15477"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15477\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nManufacturing process:
\nRaw Materials
\n¯
\nMixing
\n¯
\nHot Moulding
\n¯
\nBaking
\n¯
\nGrinding \/ Machining
\n¯
\nPowder Coating
\n¯
\nInspection – Fittment- Packing – Dispatch
\nDetails of Raw Materials
\n1. Fibers – Mainly fibers such as Rock wool, steel wool and Polyester etc.
\n2. Binders – Phenolic Resin
\n3. Fillers – Non organic chemicals such as Barium Sulphate, china clay, Whiting etc.
\n4. Colousing Matters- Black matt powder and red oxide
\n5. Stabilizers – Friction Dust. Graphite.
\n7. Steel Plate – M.S. Back Plate
\nDetails of Finished products & their uses.
\nDisc Brake Pads are used in passenger and commercial vehicles for its brake application, This is the first year of the company as commercial production is started from September 2014 and no business were discontinued.
\nDESCRIPTION OF PRODUCTS.
\nwe at COMPO ADVICS (INDIA) PRIVATE LIMITED. Gut No. 325\/1, Bhalgaon, Beed Road, Aurangabad. Dist. Aurangab<\/p>\n
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\nThese DBP are sold in SETS and not in Single manner. The dealer's
\nCompany campus photo at Bhalgan, Beed Road, and Dist. AURANGABAD is enclosed herewith for reference.
\nThe 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
\n“Parts and accessories of the motor vehicles of heading 8701 to 8705 (other than specified Parts of tractors)
\nThe dealer has also submitted manufacturing Activities i.e. FLOW CHART from Raw Material
\nTo finished goods. Copy of the Flow Chart is enclosed herewith for ready reference. The Dealer has also submitted Description of Products (copy enclosed). As per Chapter Heading 8708 under the GST regime wef. 01.07.2017 attracts 28% GST i.e. SGST 14% CGST 14% Total 28%.
\nCopy of the rate of tax as per tariff under the GST rules is enclosed her<\/p>\n
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\nThe application 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.
\n05. OBSERVATIONS
\nWe 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:
\nThrough 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 view point there exist two competing entry with different HSN code Viz 6813 and 8708 and they are subject to different GST Rate. In <\/p>\n
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\nFRICTION 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
\n6813
\n
\nFRICTION 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
\n6813 20<\/p>\n
\n6813 20 10<\/p>\n
\n6813 20 90<\/p>\n
\n
\n
\nNot containing asbestos :
\n6813 89 00<\/p>\n
\nWe have also gone through Explanatory Notes to the Harmonized System of Nomenclature<\/p>\n
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\nConsidering 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.
\nNow we have to examine other competitive chapter Heading 8708 which is reproduced as below:
\nFurther the chapter Heading 8708 covers parts and accessories of motor vehicles of Heading 8701 to 8705 provided the parts and accessories fulfil following conditions:
\n(i) They must be identifiable as being suitable for use solely or principally with the above-mentioned vehicles;
\n(ii) They must not be excluded by the provisions of Notes t<\/p>\n
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