TaxTMI 
TaxTMI 
2024 (6) TMI 106
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....ith Battery Pack for Jet Suit" in accordance with the specification given in the annexure to the supply order. Jet Suit (also referred as flight suit) is a wearable flight system consists of a harness fitted with the Electrically Ducted Fan (referred as "EDF") based Thrusters mounted at various critical points to provide the lift that supports the weight of the user and all the accessories. The system will also consist of airbag-based flight suits and helmets integrated with the displays to protect the wearer's body & head against impacts and transmit critical flight parameters to the user. As per the supply order, the proposed configuration of the wearable flight system has a requirement of 6 EDF thrusters within an individual static thrust of approximately 25 kgs at MSL resulting in a cumulative static thrust of approximately 150 kgs. The system is also proposed to have self-contained rechargeable Battery Pack to cater to the electrical requirement of the EDF thrusters and various accessories. 3. In view of the above, the applicant has sought advance ruling in respect of the following questions: a) What is the classification of goods and/or service for the supply ....
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....the applicant won a supply order from the "Defence Bioengineering and Electromedical Laboratory" (referred as DEBEL) via its LOI No. DBL/MMG/ 18/TE/2021-22 dated 11.02.2022. Followed by this, a supply order No. DEBEL/22AT0062/BMI/21-22/LP dated 11.02.2022 was issued by the "Defence Bioengineering and Electromedical Laboratory" to the applicant. As per the term of supply order, the applicant should supply specified numbers of "EDF Thrusters with Battery Pack for Jet Suit" in accordance with the specification given in the annexure to the supply order. 5.4 Jet Suit (also referred as flight suit) is a wearable flight system consists of a harness fitted with the Electrically Ducted Fan (referred as "EDF") based Thrusters mounted at various critical points to provide the lift that supports the weight of the user and all the accessories. The system will also consist of airbag-based flight suits and helmets integrated with the displays to protect the wearer's body & head against impacts and transmit critical flight parameters to the user. 5.5 As per the supply order of the DEBEL, referred supra, the proposed configuration of the wearable flight system has a requirement of 6 EDF t....
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....eserves its right to vary, amend, alter and/or add to these facts and to produce such oral and documentary evidence and file such compilation of documents as may be necessary at the time of hearing of the application for advance ruling. 6. Applicant's Interpretation of Law: 6.1 Statement of Interpretation/ Understanding of Law By The Applicant As per Section 2 (1) of the Aircraft Act, 1934; "aircraft" means any machine which can derive support in the atmosphere from reactions of the air, [other than reactions of the air against the earth's surface] and includes balloons, whether fixed or free, airships, kites, gliders and flying machines; 6.2 Jet-pack suits also known as Jet suits or jet-powered suits or flight suit are wearable devices that can facilitate human flight. They are advanced pieces of technology that combine elements of aviation and personal propulsion systems. Jet suits typically consist of multiple jet engines or thrusters mounted on various parts of the body, such as the arms, legs, and back. The jet engines or thrusters generate a powerful thrust that propels the user through the air, allowing them to achieve vertical take-off and contr....
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....upply of specified quantity of "EDF Thrusters with Battery Pack for Jet Suit" in accordance with the specification given in the annexure to the supply order. In order to complete the supply of EDF Thrusters and Battery Packs for Jet Suit, the applicant is required to carry out specified performance evaluation test of the EDF Thrusters and Battery packs and submit the performance mapping and test report along with supplies made. 6.6 The applicant is also responsible to ensure following supplies as a part of supply of EDF Thrusters with Battery Pack for Jet Suit: • All the necessary fixtures, rigs for the performance evaluation. • Interface for data feeds from the EDF controllers and BMS for onward transmission to the helmet mounted display for the user, (providing helmet is not in the scope of supply) • The throttle control switch being positioned on right/left hand for use of the user. • Designing, fabricating and suppling suitable mounting brackets for the EDFs, Battery pack and the speed controllers based on the technical inputs from the DEBEL. • An emergency quick release devise to jettison the battery back away....
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....ts along with the arguments made by the applicant & the submissions made by their learned representative during the time of hearing. 10. The applicant, under order from the "Defence Bioengineering and Electromedical Laboratory" (referred to as DEBEL) for supply of specified numbers of "EDF Thrusters with Battery Pack for Jet Suit" in accordance with the specification given in the annexure to the supply order, intend to supply the same and thus seeks advance ruling in respect of the classification of the said goods and the rate of GST applicable thereon. The applicant submitted that 'Jet Suit' (also referred as flight suit) is a wearable flight system consists of a harness fitted with the Electrically Ducted Fan (referred as "EDF") based Thrusters mounted at various critical points to provide the lift that supports the weight of the user and all the accessories. The system will also consist of airbag-based flight suits and helmets integrated with the displays to protect the wearer's body & head against impacts and transmit critical flight parameters to the user. Further, Jet-pack suits also known as Jet suits or jet-powered suits or flight suit are wearable devi....
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....ovisioned to cut off EDF power in case of any inadvertent scenarios. 13. In view of the foregoing, the impugned supply of EDF Thrusters involves EDF Thrusters and Battery packs along with the performance mapping and test report. It is an admitted fact that the applicant does not manufacture the EDF thrusters and battery packs but procures domestically or imports them. The important aspect of the supply involved is the performance of the said EDF thrusters and thus the supply will be done on acceptance of the performance mapping and test report by the recipient, of the impugned supply. Therefore the applicant is involved in supply of EDFs i.e. Electrical Ducted Fans along with Battery packs and the accessories such as mounting brackets, wiring etc., 14. In view of the foregoing, we proceed to examine the classification of the impugned product. In this regard we invite reference to Explanations (iii) and (iv) appended to the Notification No. 01/2017-Central Tax (Rate), dated 28.06.2017, which are relevant to determination of Classification of a product & are as under: (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-....
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.... thereunder. Hence the contention of applicant that the Jetsuit is aircraft and the EDF thrusters with battery pack is part of aircraft is not acceptable. 16. EDF is a type of propulsion system commonly used in electric radiocontrolled (RC) planes and some small drones. EDFs are designed to mimic the appearance and function of jet engines, that are powered by electric motors and are typically more compact. They consist of a ducted fan, which is essentially a fan enclosed in a cylindrical housing (the duct). The product EDF i.e. "Electric Ducted Fan", works on electric current drawn from the battery. The principle involved in the process is that the fan sucks air in and expels it at high speed, the result being that the object attached to it is propelled forward. It can be used in many applications such as model jet engines etc., and thus it merits classification as a fan being ducted i.e. enclosed / covered by a metallic sheet, but not as a part of other aircraft. Further, the general rules for the interpretation of the harmonised system, under rule 3 specifies that when by application of Rule 2 (b) or for any other reason, goods are prima facie, classifiable under two or more h....