TaxTMI 
TaxTMI 
2026 (5) TMI 338
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.... the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s BorgWarner Cooling Systems (India) Private Limited, having place of business at E-14, SIPCOT Industrial Park, Mambakkam-Sriperumbudur, Kancheepuram, Tamil Nadu-602105 (hereinafter called as the "Applicant") has registered with GSTIN 33AABCB5837E2ZZ under the Goods and Services Tax Act. They have filed this application for advance ruling under Section 97 of the CGST Act, 2017, and corresponding provisions under the Section 97 of TNGST Act, 2017. The Applicant has made a payment of application fees of Rs. 10,000/- under sub rule (1) of Rule 104 of CGST Rules, 2017 and TNGST Rules, 2017. ....
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....arings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints) 8483 60 Clutches and shaft coupling (including universal joints): 8483 60 10 Flexible coupling 8483 60 20 Fluid Coupling 8483 60 90 Other 2.4 At present, the goods (Fan Drive Assembly) are supplied by the Applicant under HSN 8708 as parts and accessories of the motor vehicles of headings 8701 to 8705. 2.5 The applicant has filed the present application for advance ruling seeking clarification on the following questions: 1. Whether the Fan Drive Assembly supplied by BorgWarner Cooling systems (India) Private Limited (The Applicant) is classifiable under Heading 8483.60 of the Customs Tariff Act, 1975 as a Clutch and Shaft Coupling, for the purposes of classification under the GST Law? 2. Whether the Fan Drive Assembly classifiable under Heading 8483.60, is covered under Sl. No. 369A of Schedule III 9% of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 (as amended)? 3. Whether the individual parts ....
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....Achieves fan speed control through precise fluid distribution, regulated by the engine ECU using PWM (pulse width modulation) signals This operation is a textbook example of a fluid coupling, where viscous fluid within an enclosed chamber enables smooth, variable torque transmission between the engine shaft and the radiator fan, depending on thermal and electronic inputs. Unlike friction clutches, there are no contact plates - the drive depends entirely on the modification of fluid flow and viscosity. 3.6 Key Technical Features Indicating Fluid Coupling From the product sheet: • High-speed reservoir and patented fluid distribution is a core design element, • Maintenance-free, self-contained unit - with no mechanical clutch plate to wear out, • Improved fuel economy through low disengaged fan speed and controlled engagement, • Low parasitic losses and less fan drag, clearly signifying fluid coupling behaviour. These are not features of a traditional mechanical clutch; they are consistent with and exclusive to hydrodynamic torque transmission systems, which are technically tariff-wise fluid couplings. 3.7 Functional C....
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....r speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints) 8483 60 Clutches and shaft coupling (including universal joints): 8483 60 10 Flexible coupling 8483 60 20 Fluid Coupling 8483 60 90 Other This is a clear and unambiguous technical description that precisely fits the product. As demonstrated through the manufacturer's Product Sheet for Visctronic Fan Drive Technology and the accompanying Troubleshooting Guide, the Fan Drive Assembly: • Operates via viscous fluid (Silicone oil), • Engages/Disengages based on ECU commands, • Uses electronically actuated fluid flow instead of friction plates, • Is self-contained and functions as a torque-modulating coupling mechanism. The operation and internal architecture of the assembly align squarely with the classification under HS Code 8483.60.20 - Fluid coupling, a specific description under the First Schedule to the Customs Tariff Act, 1975. 3.10 Legal Exclusion from Chapter 87 by Note 2 to Section XVII The classification of this product under Heading 8708-"....
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....n question: • Is a self-contained mechanical device that regulates torque transmission via viscous fluid, • Has a clear and specific functional description under Heading 8483.60.20 - Fluid Coupling, • Is neither a loose part nor a component that lacks independent mechanical identity, • And is not listed among the exceptions (i.e., not covered under Headings 8409, 8431, etc.). Thus, per Note 2(a) to Section XVI, even if the Fan Drive Assembly is ultimately fitted into a motor vehicle, it must be classified under Heading 8483, and not as a part or accessory under any other heading - whether in Chapter 87 or elsewhere. This reinforces the rule that functional completeness and tariff-specific identification override end-use or integration into a composite machine. 3.12 Harmonized Treatment with Note 2 to Section XVII This provision complements Note 2(e) to Section XVII, which excludes from Chapter 87 all articles that fall under Chapter 84-particularly Heading 8483-when such articles are integral parts of engines or motors. The harmonized reading of both notes results in a two-fold conclusion: a) Note 2(a) to Sect....
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....t is not simply a general clutch or engine accessory, it is a mechanically self-contained torque modulation device, regulated via viscous fluid. b) The Fan Drive Assembly, like the flywheel assembly, is integral to engine function and is excluded from Heading 8708 by Note 2(e) to Section XVII, which removes from 8708 all articles of Heading 8483, provided they from part of the engine or motor assembly - which is clearly the case here. c) The AAR in El-Chico clutch emphasized that use in a motor vehicle does not control classification when a product has an independent identity in a specific tariff heading. That principle applies with equal, if not greater, force to the present case. d) Like the flywheel, fluid couplings are listed in the Explanatory Notes to Heading 8483.60. This international interpretive support aligns fully with the functional specifications of the Visctronics Fan Drive, as confirmed in the product sheet and troubleshooting documentation. 4. The applicant is under the administrative control of State. The concerned authorities of the Centre and State were addressed to report if there are any pending proceedings against the applicant o....
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....aging the shaft of the fan so as to control its speed. 6. Discussions and Findings: 6.1 We have carefully examined the submissions made by the applicant in their advance ruling application and the submissions made during the personal hearing. We have also considered the issue involved, the relevant facts and the applicant's submission / interpretation of law in respect of question on which the advance ruling is sought. 6.2 We find that the query is liable for admission as it gets covered under Section 97 (2) (a) and (b) of CGST/TNGST Act, 2017 under a) classification of any goods or services or both; and (b) applicability of a notification issued under the provisions of this Act; 6.3 We understand that the applicant is engaged in the supply of Fan Drive Assemblies, which are used in the Engine Cooling Systems of motor vehicles, primarily medium-to-heavy-duty vehicles such as trucks, SUVs, and Tractors for Agri segment. These assemblies are technologically designed to function as clutch mechanism and are placed in between the Engine and the HVAC system (Heating, Ventilation, and Air conditioning). The Fan Drive Assembly operates on the viscous fluid coupling principle, w....
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....erstand that a Fan Drive Assembly in a motor vehicle is used as part of the engine cooling system, primarily to control the rotational speed of the radiator cooling fan based on engine temperature requirements. It optimizes heat exchange, reduces noise, and improves fuel efficiency, particularly in commercial vehicles and heavy-duty trucks. The Fan Drive Assembly functions not as a standard clutch, but as a fluid coupling device using viscous fluid for power modulation. The assembly does not operate on direct mechanical friction but on fluid dynamics. 6.6 Let us go in to the classification of the above said product under Customs Tariff Act, 1975 for GST purposes. HSN Description of Goods 8708 Parts and accessories of the motor vehicles of headings 8701 to 8705 8708 93 00 Clutches and parts thereof We get to understand that a clutch in heavy vehicles is a heavy-duty mechanical device situated between the engine and the gearbox that engages and disengages power transmission. It allows the driver to interrupt power flow to the wheels for smooth gear shifting and stopping without turning off the engine. In heavy-duty trucks, these are often robust, single or mul....
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.... when two competing classifications exist - one general and one specific - the specific must prevail. This doctrine has been consistently applied by courts in the context of tariff and tax classification. In the present case, the applicant's product-the Fan Drive Assembly - is specifically and functionally a "fluid coupling", which is explicitly provided for under Heading 8483.60.20 of the First Schedule to the Customs Tariff Act, 1975 and fits the product. It is technically and legally distinct from conventional vehicle clutches classified under HSN 8708.93.00. 6.9 Further, the classification of this product under Heading 8708-"parts and accessories of motor vehicles"- is legally untenable in light of Note 2 to Section XVII, which reads: "The expressions 'parts' and 'parts and accessories' do not apply to the following articles, whether or not they are identifiable as for the goods of this Section: (e) Machines and apparatus of headings 8401 to 8479, or parts thereof, other than the radiators for the articles of this Section, articles of heading 8481 or 8482 or, provided they constitute integral parts of engines and motors, articles of heading 8483". This c....
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....earing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)" shall be substituted; We find that the Fan Drive Assembly classifiable under HSN 8483.60 of the First Schedule to the Customs Tariff Act, 1975 would fall under SI. No.369A of Schedule III of Notification No.1/2017 -Central Tax (Rate) dated 28.06.2017 (as amended) and leviable to GST @ 18% (i.e. CGST at 9% & SGST at 9%). 6.13 It may be noted that with effect from 22.09.2025, HSN 8483.60 of the First Schedule to the Customs Tariff Act, 1975 would fall under Sl. No.468 of Schedule II of Notification No.9/2025 -Central Tax (Rate) dated 17.09.2025 and leviable to GST @ 18% (i.e. CGST at 9% & SGST at 9%) as under: Schedule - II - 9% (CGST) S.No. HSN Description 468 8483 Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulley....