Formula One's governing body dropped all guilty verdicts yesterday against the seven teams that refused to race in last month's U.S. Grand Prix in Indianapolis.

FIA's World Motor Sports Council voted overwhelmingly in Paris to accept a recommendation that the case be rescinded against BMW-Williams, Mercedes-McLaren, BAR-Honda, Toyota, Sauber, Red Bull and Renault.

The FIA's senate made the recommendation last week.

"The guilty verdicts of June 29 made against the seven Michelin teams have therefore been canceled," the FIA said in a statement.

The seven teams withdrew from the June 19 race after Michelin said its tires were unsafe for the Indianapolis circuit. Michelin wanted a series of turns installed to slow cars, but FIA refused.

FIA found the teams guilty of bringing the sport into disrepute and threatened anything from lifetime bans to heavy fines. But FIA's senate, made up of eight senior officials, including President Max Mosley, backed down at a meeting last week.

The seven teams had made clear they could withdraw from F1 if they were punished.

It was the latest example of a rift that threatens to divide the sport after the 2007 season.

Mosley and F1 commercial director Bernie Ecclestone are trying to keep control of the sport. Three teams -- Ferrari, Red Bull and Jordan -- have signed up to stay with the series through 2012.

The seven other teams, led by the five major manufacturers -- Renault, BMW, Mercedes, Honda and Toyota -- have threatened to start a breakaway circuit.

-- From News Services