GST classification of roof ventilators follows specific product function and trade parlance, not a broader windmill description.

Tariff classification under GST turned on the most specific description and the product's primary function in trade parlance. Roof ventilators, used for continuous extraction of air from buildings, were not treated as windmills because that broader description did not match their commercial identity. They were classified under heading 8414 of the Customs Tariff as adopted by GST. Once so classified, the applicable GST rate followed the entry for fans and ventilating or recycling hoods incorporating a fan, and the goods were held taxable at 18% from 15.11.2017.

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Issues: (i) Whether roof ventilators are classifiable as windmills under the GST tariff. (ii) Whether roof ventilators are liable to GST at the rate applicable to heading 8414.

Issue (i): Whether roof ventilators are classifiable as windmills under the GST tariff.

Analysis: Classification was determined by the general rules of interpretation, under which the most specific description is to be preferred. The primary function of the goods was found to be ventilation by continuous extraction of air from buildings. In trade parlance they were identified as roof ventilators and not as windmills.

Conclusion: Roof ventilators are not classifiable as windmills and are correctly classifiable under heading 8414 of the Customs Tariff as adopted by GST.

Issue (ii): Whether roof ventilators are liable to GST at the rate applicable to heading 8414.

Analysis: Once classified under heading 8414, the applicable rate followed the entry for air or vacuum pumps, air or other gas compressors and fans, and ventilating or recycling hoods incorporating a fan. The ruling applied the relevant GST notifications and the corresponding State notification.

Conclusion: Roof ventilators attract GST at 18% comprising CGST 9% and TGST 9% under Schedule III, with effect from 15.11.2017.

Final Conclusion: The application was rejected on the claimed windmill classification and the goods were held taxable at the rate applicable to heading 8414.

Ratio Decidendi: For tariff classification under GST, the most specific description and the product's primary function in trade parlance prevail over a broader or claimed description.

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