GST Classification of Condenser Fans and Blowers: Independent Devices or AC Parts?

The classification of goods under the Goods and Services Tax (GST) regime often hinges on the specific function and "essential character" of the product. A recurring dispute in the manufacturing sector involves distinguishing between general-purpose machinery and components specifically designed for a particular apparatus.

In a recent advance ruling, the Authority for Advance Ruling (AAR), Rajasthan provided clarity on this issue in the case of In re Pee Aar Automotive Technologies Private Limited. The central question was whether condenser fans and blowers, used in automotive settings, should be categorized as general industrial fans under Heading 8414 or as specific parts of air-conditioning machines under Heading 8415.

Factual Background

The assessee is a manufacturer operating a production facility in Ghiloth, Alwar, Rajasthan. Their primary business involves the manufacture and supply of condenser fans and blowers. These products are engineered for use in automotive and heavy vehicle applications.