In Re: M/s. Pee Aar Automotive Technologies Private Limited.

The applicant, M/s Pee Aar Automotive Technologies Private Limited, sought an advance ruling on the classification of its Condenser Fans and Blowers under the GST Tariff. The applicant contended that its products, being standalone air-moving devices without any temperature control or refrigeration functionality, should be classified under HSN 8414.59.30 as industrial fans and blowers attracting GST at 18%, rather than under Heading 8415 which covers air-conditioning machines. The applicant argued that since the products consist only of a motor, blades and shroud, and do not incorporate any refrigerant circuits, evaporator, compressor or temperature control elements, they cannot be classified as parts of air-conditioning machines.
 
The Authority for Advance Ruling ruled against the applicant, holding that the Condenser Fans and Blowers are classifiable under HSN 8415 90 as parts of air-conditioning machines, attracting GST at 28%. The Authority noted that the applicant's own submissions disclosed that the condenser fan is specifically designed for rooftop bus air-conditioning systems for expelling hot air from the condenser section, and that the blower is designed for forced air circulation in automotive and off-highway vehicle HVAC systems, primarily supplied to OEMs and Tier-1 suppliers producing climate control systems. Applying Note 2(b) to Section XVI of the Customs Tariff, which provides that parts suitable for use solely or principally with a particular kind of machine are to be classified with that machine, and noting that the recipients of the applicant's supplies were predominantly air-conditioning and refrigeration entities, the Authority held that both products are parts of air-conditioning machines and accordingly classifiable under Heading 8415 90.