TaxTMI 
TaxTMI 
2022 (9) TMI 888
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....acture of Bus Rooftop air conditioning systems which include Rooftop Unit, Compressor and installation kit. In addition the applicant undertakes installation and servicing of air conditioning systems as per the requirement of customers through dealer network. They specially cater to the needs of passenger buses and is not into the business of air conditioning systems for passenger car, commercial vehicles, house or office. 3. In view of the above, the applicant has sought advance ruling in respect of the following questions: i. Classification of Bus air-conditioning system inclusive of Rooftop unit, compressor and installation kit for one consolidated price to a single customer. ii. Classification of Rooftop unit, compressor and installation kit sold to single customer for a single fitting at customer end, but price negotiated and agreed separately for each unit. iii. Classification of Rooftop unit, compressor and installation kit sold as mentioned below: a. Rooftop unit alone b. Rooftop unit and compressor c. Compressor d. Installation Kit e. Compressor and installation kit f. Rooftop unit and installation kit g. Rooftop unit and compressor 3.1 Admissibility ....
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....ion i.e. not as a part of air conditioning system) 18% 27/2017-CT(R) 5. Applicant's Interpretation of Law: The applicant instead of giving their arguments have merely quoted the definitions of composite supply, mixed supply and Section 8 of the CGST Act 2017, and stated that: Rooftop unit, Installation kit and Compressor together when sold for a single price can be treated as composite supply. However, in some cases customers negotiate the prices separately for Rooftop unit, Installation kit and Compressor and customer has option to choose the all or any of these three units. Customer or accordingly issues purchase order for units he needs with separate prices for each units. In such cases, whether we can still call it as composite supply or mixed supply? PERSONAL HEARING PROCEEDINGS HELD ON 22.06.2022 6. Sri. Anant Nyamannavar, Chartered Accountant and Authorised Representative of the applicant appeared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions....
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....nts for changing the temperature and humidity, including those machines in which the humidity can't be separately regulated. Heading 8415 20 covers air conditioning machines of a kind used for persons in motor vehicles and the heading 8415 2010 covers the said machines for buses. 12. In the instant case, it is an admitted fact that the applicant supplies the air conditioning system, comprising of Rooftop unit, Compressor and Installation kit, as a single product for a consolidated price to a single customer, exclusively for buses. Thus the said air conditioning system for buses merits classification under heading 8415 20 10 as the same is specifically classified under the said heading. 13. The second question is about the classification of Rooftop unit, compressor and installation kit sold to single customer for a single fitting at customer end, but price negotiated and agreed separately for each unit. It could be inferred from the question that the applicant is undoubtedly supplying bus air condition system only comprising all the three major components as in the case of first question, but the prices of individual components have been negotiated and agreed separately for ea....
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....e heading appropriate to that function. 5. For the purposes of these Notes, the expression "machine" means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of Chapter 84 or 85. It could be seen from Note 3 supra that parts of composite machines consisting of two or more machines fitted together to form a whole are to be classified as if consisting only of that component or as being that machine which performs the principal function. Further in terms of Note 4 supra, where a machine consisting of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices} intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. In the instant case when Rooftop Unit, Compressor and Installation Kit are supplied together to a single customer for a single fitting at customer end, it amounts to supply of a composite machine designed for the purpose of performing the principal function of a bus air conditioning system, and hence such supply is cl....