TMI Blog2019 (10) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... ing unit, and would consist of exhaust. The applicant states that the Air Ventilation Unit only has exhausting facility and removes the old air and fresh air is brought in from outside after filtration, The same involves fans and these fans blow the air out and creates a vacuum in the area and this vacuum is filled by the fresh air from a different source which passes through filters. Hence this allows Circulation of air and hence is an Air Circulator which is covered under HSN 8414 59 10 which deals with Fans which are air circulators. The Air handling units which are supplied by the applicant is classified under HSN 8415 90 00 - Air Ventilators which supplied by the applicant is classified under HSN 8414 59 10. - KAR ADRG 113/2019 - - - Dated:- 30-9-2019 - SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by Sri Jayararn Hiregange, Chartered Accountant ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. VTS TF Air Systems Private Limited, (called as the Applicant hereinafter), having GSTIN number 29AACCC6263C1ZT, have filed an application for Advance Ruling under Section 97 of the CGST / KGST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specific functions. When put as part of the system, the AHU/ Ventilation Unit in conjunction with other independently functioning goods create desired result of air Conditioning. In the case of Air Handling Unit, the product has specific function of circulation of air and temperature control. In case of Ventilation Unit, the product helps in circulation of air. The applicant submits that both AHU and Ventilation Units have independent function and hence the goods are not Classifiable as parts of air conditioners under HSN 8415 90 00. 4.5 Further, the applicant submits that even AHU and Ventilation Units have distinction in their function. AHU, in addition to air circulation, helps in control of air temperature as it contains the temperature control device, whereas the Ventilation Unit, as its name suggests, merely circulates the air. 4.6 In view of the above, the applicant States that they believe that the goods are correctly classifiable under HSN 8414 80 90. PERSONAL HEARING: / PROCEEDINGS HELD ON 29.04.2019. 5. Sri. Jayaram Hiregange, Advocate and duly authorised representative of the applicant appeared for personal hearing proceedings held on 29.04.2019 reiterat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above view has been upheld by the Hon ble Supreme Court, in the cases of Commissioner of Central Excise, Delhi Vs. Carrier Aircon Ltd 2006 (199) ELT 577 (SC) = 2006 (7) TMI 8 - SUPREME COURT . In view of the above, the classification of AHU and Ventilation Units, cleared by the applicant, have to be determined on its functional basis rather than end use basis. Accordingly the products merit classification under Chapter 8414 80 90. 6.4 The applicant States that AHU and Ventilation Units are part of the system and not part of Air Conditioner, the applicant states as under: (a) Central Air Conditioning is a system used in hospitals, hotels and industrial units. The System is set up using various components. (b) In this regard, the applicant brings to the attention the CBEC Order No. 58/1/2002-CX dated 15.01.2002 issued under section 37B of the Central Excise Act, 1944 which clarifies as below: Refrigeration/ Air Conditioning plants. These are basically systems comprising of compressors, ducting, pipings, insulators and sometimes cooling towers, etc. They are in the nature of systems and are not machines as a whole. They come into existence only by assembly a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8414 20 20 --- Other hand pumps 8414 20 90 --- Other 8414 30 00 - Compressors of a kind used in refrigerating equipment 8414 40 - Air compressors mounted on a wheeled chassis for towing; 8414 40 10 ---- Reciprocating air compressors 8414 40 20 --- Centrifugal air compressors 8414 40 30 --- Screw air compressors 8414 40 90 --- Other - Fans : 8414 51 -- Table, floor, wall, window, ceiling or roof fans, with a self-contained electric motor of an output not exceeding 125 W: 8414 51 10 --- Table fans 8414 51 20 --- Ceiling fans 8414 51 30 --- Pedestal fans 8414 51 40 --- Railway carriage fans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s basically a part of the centralized air conditioning unit, and has exchanger for heat or temperature control. 7.6 The mechanism in the Air Handling Unit is that it has a heat exchanger or temperature control and an air blower which blows the temperature set air. It has the following parts : (1) Mixing Section (2) Filters (3) Heat Exchangers (4) Heater Section (5) Fan Section (6) Supply Section 7.7 The contention of the applicant that it must be classified under HSN 8414 80 90 is examined and the HSN 8414 80 is related to Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters , other than vacuum pumps, Hand or foot operated air pumps, Compressors of a kind used in refrigerating equipment, Air Compressors, Fans and Hoods having a maximum horizontal side not exceeding 120 Cm. The product is also not covered under Gas Compressors, not a free piston generators for gas turbine or a turbo charger and hence. the claim that they would fall under the residual entry 8414 80 90. 7.8 The Heading 8415 reads as under: Tariff Item ..... X X X X Extracts X X X X X X X X Extracts X X X X
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