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2019 (7) TMI 1506 - AAAR - GSTClassification of goods - rate of tax - Fan Coil Unit - whether the product is covered under HSN Code 8418 under Goods and Service Tax Act, 2017? - challenge to AAR decision. HELD THAT:- FCU is a part of the Air Conditioning System. It does not have anything in common with the refrigerating unit. The HSN Code 8418 covers refrigerators, freezers and heat pumps. The essential elements of refrigerator are listed as compressor, condenser and evaporators whereas it is seen from the description of the FCU that it is commonly a part of the Air Conditioning System and Heading 8418 does not include ‘Air Conditioning Systems’. Therefore, we are unable to agree with the contention of the appellant that the FCU will be covered under Heading 8418 - It is easily seen from the description that the Fan described under 8414 do not at all have any resemblance with a FCU. Therefore, there is no reason to believe that FCU will be covered by heading 8414. As per the explanatory note, this sub heading also includes both indoor and outdoor units for split system or conditioning machines when presented separately, The explanatory notes also state that in accordance with the provision of Note-2 (b) of Section XVI this heading includes separately presented indoor units and outdoor units in split system or conditioning machine of this heading. In view thereof, the FCU would be covered by HSN Code 8415. Appeal dismissed - Ruling given by the AAR is upheld and warrants no interference.
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