The Karnataka Authority for Advance Ruling (AAR), has held that Rooftop unit or installation kit sold individually or in combination merits classification under heading 8415 90 00 of Customs Tariff Act and hence it attracts 10% GST.
The applicant, M/s. Eberspaecher Suetrak Bus Climate Control Systems India Pvt. Ltd is into manufacture 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.
The applicant has filed for advance ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017.
The applicant has sought advance ruling in relation to the classification of 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
The Authority consisting of Dr. M.P. Ravi Prasad Additional Commissioner of Commercial Taxes and T. Kiran Reddy Additional Commissioner of Customs & Indirect Taxes observed that “In this regard we observed that Rooftop unit and Installation kits are not classified individually under the Customs Tariff Act 1985, but are identified/recognised as parts of the composite machine i.e. “air condition system for a bus” itself. Thus the above items either individually or in combinations, are to be classified as parts of said composite machine, as they are suitable for solely or principally with a particular composite machine i.e. air conditioning system for bus. Thus they merit classification under heading 8415.90.00 i.e., parts of air conditioning machines and attracts GST accordingly.”
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