9911796707
TMI Blog2012 (9) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... Once it is recognised that there is sale of goods involved in such contracts and the sale can be treated as a separate component they were eligible for the exemption under Notification No. 12/2003-ST providing exemption from goods sold in the course of providing service - value of material sold is actually more than the value for which exemption is claimed - no further service tax is due from the appellants - waiver of pre-deposit granted - 1045 OF 2011 - ST/3/475/2012-CUS - Dated:- 11-4-2012 - Ms. Archana Wadhwa, Mathew john, JJ. B.L. Narasimhan for the Appellant. Amrish Jain for the Respondent. ORDER Mathew John, Technical Member The appellants are engaged in the business of manufacture/ import and sale of photo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed. (5) Business Support Services ('BSS' for short) - This type of contracts are for providing printing solution to customers. BSS contracts generally involved the following activities .- ( a ) Pre-printing - which involves colour printing of standard images such as customer logo, advertisements or other information? Printing of final variable data, such as blling information, credit card statements etc. is done on pre-printed paper; ( b ) Supply of plain paper or pre-printed paper for printing; ( c ) Printing.- The variable data provided by the customer is printed on plain paper or pre-printed paper as per contract. e.g. printing of bills for Airtel, Hutch, BSNL, Credit Card statements for SBI Credit Cards, study material for I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the question whether there is any sale of such material in the impugned contract and whether such materials sold can be separately subjected to VAT was decided initially by the Karnataka High Court in the case of Modi Xerox Ltd. v. State of Karnataka [1999] 114 STC 424 (Kar.). The decision of the Karnataka High Court was further affirmed by the Hon'ble Supreme Court in the case of Xerox Modicorp Ltd. v. State of Karnatka [2005] 142 STC 209 and in the case of Imagic Creative (P.) Ltd. v. Commissioner of Commercial Taxes [2008] 12 STT 392. 4. The ld. Counsel also points out that this issue has been examined in the context of service tax in the following cases =- (1) Wipro GE Medical Systems (P.) Ltd. v. CST [2009] 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. A.R. on the other hand argues that for claiming exemption under Notification No. 12/2003-ST for material sold in the course of providing service, the appellants should support the claim with necessary documents proving value of goods sold. The appellants have not done so. Instead the appellants deducted the value on which they paid VAT. Payment of VAT on a particular value cannot be taken as the basis for providing exemption under Notification No. 12/2003-ST. 9. We have considered arguments on both sides. In view of the various decisions quoted by the Counsel for appellants, it is no longer, res integra that in a contract for providing service of the type involved in this case the service component and value of materials can b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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