TMI Blog2022 (1) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... the computer operations in the aircraft. The GPU cannot be used as a normal generating set in view of its inbuilt configuration, which facilitates only functions of aircrafts - The HSN General Explanatory Notes to Chapter 88 lay down that, Subject to the provisions of the Notes to Section XVII, it also covers parts of such equipment. The relevant Section Notes have already been discussed above and the conclusion thereof is that the Unit under consideration, based on its design and intention to be used solely as a source of power and preconditioned air to stationary/parked aircrafts, merits classification under Chapter 88 of the Customs Tariff. Note 3 to Section XVII states that references in Chapters 86 to 88 to parts or accessories do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those Chapters. A part or accessory which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part or accessory. The Unit can only be termed and considered as a part of aircraft which replaces the on-board APU and is suitable for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the Mak Controls [2001 (138) E.L.T. 1152] case is applicable to the applicant s case, there would have been no necessity for seeking an advance ruling. The Commissionerate has also studied the product characteristics, specifications, and functionalities in detail from various sources and there is a detailed discussion on the basis of the proposed classification of the Unit with respect to the suggestion of applicant to classify the same under Heading 8803. An apprehension is also cast that the applicant intends to import two separate units, namely, 400 Hz. Diesel Ground Power Unit (Heading 85.02) and Air-Conditioning System (Heading 84.15) possibly Lebrun and PV90-4, manufactured by M/s. Smart Airport Systems. Thereafter, keeping in view the classification of Air Conditioning System and 400 Hz. Static Converter under CTH 84.15 and 8504 respectively, it is suggested that if the two units are presented together as a combination machine, such a machine is required to be classified in terms of Section Note (4) to Section XVI, which would be the Heading 84.15 covering AIR CONDITIONING MACHINES, COMPRISING A MOTOR-DRIVEN FAN AND ELEMENTS FOR CHANGING THE TEMPERATURE AND HUMIDITY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant is claiming classification of the APU OFF COMBO Unit under Customs Tariff Entry 8803 30 00 and submitted that the Unit is classifiable under Customs Tariff Heading/HSN Code 8803 30 00 as Other parts of aeroplanes or helicopters under the general description Parts of goods of Heading 8801 or 8802 on the ground that the Unit is a part of aircraft, used solely and principally with an aircraft. Moreover, the Unit is not a propeller, rotor, under-carriage and parts thereof. Therefore, the Unit is most aptly classifiable under 8803 30 00 as other parts of aeroplanes or helicopters. 6. Further, the applicant has referred of Note 3 to the Section XVII, that a part or accessory which answers to a description in two or more of the headings of those chapters is to be classified under that heading which corresponds to the principal use of that part or accessory and has drawn an inference that those parts which are solely or principally used with an item falling under Chapters 86 to 88 are to be classified as parts of those items. Hence, classification of a part or accessory is determined by its principal use. The Unit provides the exact same functions that the on-board airc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of the applicant s reliance on the decision of the Tribunal and stated that if their product is covered under the said decision, the jurisdiction of advance ruling will get excluded. 8. From the submissions of the applicant as well as available open-source information, it can be gathered that the Unit in question is used solely for providing power to an aircraft while on ground. In addition, this is capable of providing and maintaining proper temperature in the cabin during pre-flight operations, boarding and maintenance. These functions are usually provided by the APU which is located on-board the aircraft, generally in the tail. APU allows an aircraft to operate autonomously without reliance on ground support equipment such as a ground power unit, an external air-conditioning unit or a high-pressure air start cart. The Unit acts as a replacement to an APU by supplying a combination of 400 Hz. primary source of power to the aircraft as well as preconditioned air function to complementarily provide ventilation, cold or heated air to aircraft in one single piece of equipment. When parked on the ground an aircraft cannot use the normal 50 Hz. mains power as it needs 400 Hz. pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Besides, the Unit is also capable to carrying out sanitisation functions, if required. The very fact that the jurisdictional Commissionerate is of the view that the proper classification of the Unit is under Heading 8415, despite the decision in the Mak Controls case, is sufficient to hold that an advance ruling is merited in this case. It is not in dispute that the Unit carries out functions of providing electrical power (400 Hz. used primarily in aviation) to aircraft systems during ground operations at the airport, providing electrical power and starting the first jet engine, providing preconditioned air supply to cater to requisite ventilation and also sanitisation of the aircraft cabin, if required. It can also not be disputed that it acts as a substitute for the on-board APU while the aircraft is on ground during pre-flight preparatory operations/maintenance activities, thereby functioning as a part of the aircraft. When parked on the ground an aircraft cannot use the normal 50 Hz. mains power as it needs 400 Hz. power. Thus, aircrafts require specialised Ground Support Equipment (GSE) to function whilst on the ground. An Auxiliary Power Unit or APU allows an aircraft to o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... defined function of an APU off combo unit is only as a replacement of a part of aircraft, i.e., it s APU. By combining several functions into a single unit, the Unit is clearly customized for use only with aircrafts. Therefore, it is reasonable to hold that the Unit can only be regarded as a part of aircraft which replaces the on-board APU and contributes to operational efficiency and eco friendliness. The only function of the Unit that is clearly defined is its function as the substitute to the APU, i.e., substituting an aircraft part. 11. In the case of Mak Controls, referred supra, the Hon ble Chennai Bench of the CESTAT was confronted with the issue of classification of a ground power unit for aircrafts. The Hon ble Tribunal observed that a GPU is specially designed for use with aircrafts and also the same is exclusively used with aircrafts. The GPU is attached to the aircraft when it is on the ground to keep the aircraft in functional condition of readiness for taking off. When the aircraft is in the air, there is an inbuilt power unit which keeps the various instruments and controls functional and the GPU performs the same function on the ground when the aircraft is stati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entical with those used on the lorries of Chapter 87, and since their principal use is with lorries, such parts and accessories are classified in this Section. It is needless to point out that this analogy is also applicable in the case of the Unit. It is also pertinent to mention here that in the list of exclusions in the HSN Explanatory Notes w.r.t. parts and accessories, which even if identifiable as for the articles of the Section XVII, are mandated to be excluded if they are covered more specifically by another heading elsewhere in the HSN Nomenclature, devices akin to the Unit do not appear. The HSN General Explanatory Notes to Chapter 88 lay down that, Subject to the provisions of the Notes to Section XVII, it also covers parts of such equipment. The relevant Section Notes have already been discussed above and the conclusion thereof is that the Unit under consideration, based on its design and intention to be used solely as a source of power and preconditioned air to stationary/parked aircrafts, merits classification under Chapter 88 of the Customs Tariff. 13. Having taken a view that the Unit would merit classification under Chapter 88, now I turn my attention to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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