TaxTMI 
TaxTMI 
2018 (12) TMI 143
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....n under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act". 02. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- A. STATEMENT OF FACTS HAVING A BEARING ON THE QUESTIONS RAISED Brief Facts The applicant took registration under GST Regime in order to carry on a business of supply of products such as Fan Coil Units, Valves, Actuator, thermostat, etc. to its Various Customers. The applicant is engaged in the business tosupply the Fan Coil Units along with its standard spare parts and accessories. A Fan Coil Unit (FCU) is a simple device consisting of a heating and/or cooling heat exchanger or 'coil' and fan. It consists of three basic components fan motor, heat exchanger and PCB which is connected with the valves to control the flow of water as per the set temperature. FCU are used as the terminal units for centralised System for heat exchanging. FCU consists of the following components: Fan Motor and Fan Blower: Fan motor is used for rotating impeller of the fan blo....
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....he General Rules of Interpretation to the First Schedule of Customs Tariff Act 1975, goods are to be satisfied according to the terms of the headings and any relative Section or Chapter Notes. The said Rules of Interpretation are applicable for the purpose of classification in GST laws also. 5. That as per Notification No. 1/2017- Central Tax (Rate), in Schedule III, Entry No. 319A reads as follows: HSN 8418 - "Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps (other than air conditioning machines of heading 8415) 6. That the applicant is relying on the decision of Supreme Court in the matter of Commissioner of Customs & Central Excise, Delhi v/s Carrier Aircon Ltd., = 2006 (7) TMI 8 - SUPREME COURT OF INDIA wherein it is held that; "Chillers" are refrigerating or freezing equipments as the basic function of the chillers is to chill the water or liquid. Accordingly, the refrigerating equipment shall fall under specific heading 8418. 7. That, in the sincere view of the applicant, the Fan Coil Unit is covered under HSN Code 8418 under Goods and Service Tax Act, 2017 and GST will be charged @18%. 8. That the applicant prays befo....
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....r. 3. PCB: PCB is the printed circuit board, also the brain of the Fan Coil Unit. It controls the fan speed and water flow depending upon logic as per set mode, set temperature, room temperature and in some cases also water temperature. There are different modes like cooling, dry, heat or fan mode depending upon the application of the unit. 4. Main Drain Pan: Main drain pan are used for collecting condensate water generated at the heat exchanger during process of cooling. This water is drain out through drain pan through drainage lines through gravity of drain or drain water is pumped out using condensate drain pump. 5. Filters: Filters are at the rear end of the fan coil units, through which air is sucked in by fan blowers. Filters are used to trap certain sizes of impure particles contained by the air to supply cleaner air in the cooling area. 6. Main Casing: Main casing is the body containing and protecting all the above components in one box. The applicant has stated that FCU is used to freeze the water supplied through pumps, to cool the area where machine is installed. The applicant in their contentions are claiming that FCU would be classifiable as per Notification no.....
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....umps and therefore in no way they would fall under GST Tariff Heading 8418. Now we proceed to verify if FCU has a specific Tariff Heading Entry in CTH or Customs Tariff Heading where they would be specifically and clearly covered. On detailed examination and verification we could not locate any specific Tariff Heading under GST where FCUs would be covered. In view of this we are constrained to ascertain the classification of FCU as per their nature and equipment of which they are specific parts and without which the main equipment cannot be stated to have come into existence. In view of this now we have a look at the GST Tariff Heading 8415 which reads as under:- 8415 ------- Air Conditioning machines, comprising a motor driven fan and elements for changing the temperature and humidity, including these machines in which the humidity cannot be separately regulated. From the detailed discussions about the exact nature and as to of which equipment the FCU is a part, we find that FCUs would clearly be covered under GST Tariff Heading 85159000 as parts of Air Conditioning machines of Heading 8515. The classification as above is further confirmed and reiterated by Section Note (2)....