TaxTMI 
TaxTMI 
2022 (1) TMI 1283
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....The applicant has indicated that they propose to import trailer mounted aircraft APU OFF COMBO-20 (the Unit, in short) which is a combination of 400 Hz. diesel ground power unit and air-conditioning system, with some optional facilities. APU stands for Auxiliary Power Unit. The goods are called APU OFF Unit, as its sole purpose is to substitute the aircraft's Auxiliary Power Unit (APU) when the aircraft is on the ground. They intend to import the said goods from M/s. Smart Airport Systems, France. Accordingly, comments from the jurisdictional Commissioner of Customs were invited in respect of the application for advance ruling. 3. The comments of the Commissioner of Customs (Preventive), Vijayawada are on record. In the said comments, it is stated that the applicant is not in possession of an IEC which is a precondition for obtaining an advance ruling; that, not all parts/components of an aircraft merits classification under Chapter 88, the aircraft engines (Heading 84.07) being a prime example; that, the affixing the term aircraft before the Unit shows that the applicant has a predetermined view regarding classification; that, if the facts of the Mak Controls [2001 (138) E.L....
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....d. It is commonly used to ensure ground operations at the airport, providing electrical power and starting the first jet engine. APU can also provide cabin ventilation when required. Usually, the APU is turned off as soon as jet engines are switched on. The Unit, acting as the substitute to the APU, provides the required electrical power and maintains adequate temperature in the cabin during pre-flight operations, boarding and maintenance. The Unit also has option of providing unique air disinfection system in case of such requirements (similar to the function of on-board HEPA filters when the APU runs). The diesel generator is a combination of a diesel engine with an electric generator (often an alternator) to generate electrical energy, primarily used in places without connection to a power grid, or as emergency power supply if the grid fails. Diesel generators produce power at 50 Hz./415 volts and a normal diesel generator is not capable of supplying power to aircraft parked on the ground. Further, the DG set would not be able to perform functions that the Unit can perform, such as supply of preconditioned air or disinfect the cabin. 5. The applicant is claiming classifica....
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....ed additional information as to the working of the said unit as a No Break Power Transfer (NBPT) device whereby the power consumption is transferred from the aircraft's own power generation units to ground generated power seamlessly without any interruption. It is stated that the synchronization and switching over of the power supply is carried out by the equipment on-board the aircraft. The APU OFF combo's integrated power electronics and the aircraft systems operate in synchronisation whereby the mission specific systems "talk" to each other for a seamless transfer. Ordinarily, when transferring from one power source to the other there is a momentary break in supply. To transfer without a break, the two power sources are momentarily connected in parallel. The synchronization control is achieved by connecting an existing synchronization bus to a voltage zero-crossing signal of a generator power with discrete logic ICs and analog circuits. The officers of the Vijayawada Commissionerate emphasized that since the equipment is intended to provide air-conditioning to the aircraft it needs to be classified under Heading 8415. They have also pointed to the fact of the applicant's relianc....
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....nvolved was a Ground Power Unit (GPU), specially designed for use with aircrafts and exclusively used with the aircrafts. The GPU is attached to the aircraft when it is on the ground to keep the aircraft in functional condition of readiness for taking off. GPU has an inbuilt computer system which synchronizes with the aircraft mechanism and which also activates the computer operations in the aircraft. The equipment is so designed that it could be fitted only to aircrafts and performs the function of servicing aircraft alone and could not be used as a generator elsewhere for generation of electricity. In the present application for advance ruling of an APU OFF combo unit, the similarities and differences between the two are readily apparent. On one hand, both of them are designed for exclusive use with an aircraft, can provide power to an aircraft while on ground and also capable of synchronising with the aircraft electronics for seamless transfer from one power source to another. The difference between the two is that the later equipment not only provides power to an aircraft, but also provides preconditioned air to it to maintain it at the desired temperature. Besides, the Unit is....
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....sanitising capabilities akin to the HEPA filters, if required. The Unit also has the capability of synchronising with the aircraft electronics system to ensure that the power transfer between the aircraft engines and the Unit is seamless without any break. Therefore, it is necessary to examine the applicant's suggestion on classification under Chapter 88 and if that is found unsuitable, then examine the appropriate headings in Chapter 84 or 85, as the case may be. Note 3 to Section XVII say the following :- 'Parts and accessories which are not suitable for use solely or principally with the articles of Chapters 86 to 88 are excluded from those Chapters. A part or accessory which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part of accessory.' The effect of Note 3 reproduced above is that a part or accessory shall qualify for classification under a heading of Chapters 86 to 88 only when it is used solely or principally with an article of those chapters. In this case, it has been indisputably brought out and amply illustrated that the clearly defined function of an ....
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.... classification of parts and accessories, the notes to Section XVII of the HSN Explanatory Notes lay down the following :- 'These headings apply only to those parts or accessories which comply with all three of the following conditions : (a) They must not be excluded by the terms of Note 2 to this Section, and (b) They must be suitable for use solely or principally with the articles of Chapters 86 to 88, and (c) They must not be more specifically included elsewhere in the Nomenclature.' The unit under consideration fulfils all the three criteria mentioned above. On the criterion of principal function, the HSN Explanatory Notes say that, 'Under Section Note 3, parts and accessories which are not suitable for use solely or principally with the articles of Chapters 86 to 88 are excluded from those Chapters. The effect of Note 3 is therefore that when a part or accessory can fall in one or more other Sections as well as in Section XVII, its final classification is determined by its principal use. Thus, the steering gear, braking systems, road wheels, mudguards, etc., used on many of the mobile machines fal....