In re Eberspaecher Suetrak Bus Climate Control Systems India Private Limited (GST AAR Karnataka)
a. The Bus air-conditioning system inclusive of Rooftop unit, compressor and installation kit for one consolidated price to a single customer merits classification under heading 8415 20 10.
b. The Rooftop unit, compressor and installation kit sold to single customer for a single fitting at customer end, but price negotiated and agreed separately for each unit also merits classification under heading 8415 20 10.
c. The Rooftop unit or installation kit sold individually or in combinations thereof, as mentioned below, merit classification under heading 84159000.
i. Rooftop unit alone
ii. Rooftop unit and compressor
iii. Installation Kit
iv. Compressor and installation kit
v. Rooftop unit and installation kit
vi. Rooftop unit and compressor
The compressor sold alone merits classification under tariff heading 84148011, as discussed at para 17 supra.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULINGS, KARNATAKA
M/s. Eberspaecher Suetrak Bus Climate Control Systems India Pvt. Ltd., herein after referred to as ‘Applicant), Survey No.25/1, Devalapura Village, Anugondanahalli Hobli, Hoskote Taluk, Bengaluru Rural, Karnataka – 560 067, having GSTIN 29AACCE3922E1ZV, have filed an application 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, in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and KGST Act.
2. The applicant is a Private Limited Company registered and Companies Act and has GST registrations in Bengaluru, Mumbai, Bhubaneshwar, Delhi and Kolkata. They are 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. They specially cater to the needs of passenger buses and is not into the business of air conditioning systems for passenger car, commercial vehicles, house or office.
3. In view of the above, the applicant has sought advance ruling in respect of the following questions:
i. Classification of Bus air-conditioning system inclusive of Rooftop unit, compressor and installation kit for one consolidated price to a single customer.
ii Classification of Rooftop unit, compressor and installation kit sold to single customer for a single fitting at customer end, but price negotiated and agreed separately for each unit.
iii. 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
3.1 Admissibility of the application: The question is about the “classification of goods or services or both” and hence is admissible under Section 97(2)(a) of the CGST Act 2017.
4. BRIEF FACTS OF THE CASE: The applicant furnishes the following facts relevant to the issue:
4.1 Rooftop air conditioning systems are fitted on mobile vehicles to control the inside temperature and provide adequate ventilation. The said systems mainly consists of three components (units) namely Rooftop unit, compressor and tallation kit.
a) Rooftop Unit : This item is seen on the roof of the bus i.e. certain portion is en inside the roof of the bus and certain portion is seen on the top of the roof facing sky; It is designed depending on the size of the bus and the chassis size; It contains one evaporator and one condenser, which can either be integrated as a single unit or a split unit based on the unit design of the rooftop and expectation/requirement of the customer.
The evaporator cools the air inside the bus with the help of temperature sensor and condenser absorbs the heat from inside the bus and exchanges it to the atmosphere. Rooftop consists of heat exchangers, blowers, fans, copper tubing’s, relay panel, rubber hoses and electrical wiring harness.
Though there is requirement of compressor and installation kits for running of rooftop unit, customer can choose to buy the compressor and installation kit separately from another vendor.
b) Installation Kit: It consists of controller, hoses, wiring harness, drain hoses, hardware accessories. The main purpose of the items in kit is to facilitate Rooftop unit installation on to the bus. Customers can buy only installation kit without rooftop unit.
c) Compressor: This is the heart of the complete AC system where the refrigerant is pumped to the rooftop in cycles for the heat exchange process. Cold air is not possible without a working air conditioner compressor. Some customers buy only compressor with or without modifications. Compressor is a bought out item for the company.
d) GST Rates being applied by the Applicant:
