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TMI Blog2019 (2) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... n the instant case in hand, ownership of printed books is never transferred to the School Education Department and Rajiv Gandhi Shiksha Mission etc. i.e. here the ownership of printed books at all times, lies with the CHHATTISGARH TEXT BOOK CORPORATION and more-over the sale price is being computed with reference to 'sale of books' in applicant's books of accounts. Supply of books, printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. It is to be noted that in case of composite supplies, taxability is determined by the principal supply - from the details put forth by the applicant before us, it is observed that had it been the case where the printer of books engaged by Chhattisgarh Text Book Corporation for getting the books printed where only the content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belongs to the printer, supply of printing [of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice and will fall under Services Accounting Code 9989 accordingly amenable to tax @12% 2. Facts of the case:- CHHATTISGARH TEXT BOOK CORPORATION is a registered society under Chhattisgarh society registration Act, 1973 which is run by Government and Non-Government officers. CHHAITISGARH TEXT BOOK CORPORATION has been provided with the work of publishing and distribution of books for Chhattisgarh State by the order No. F-10-12/2004/20 dated 13-04-2005 of School Education Department, Chhattisgarh. The aims of CHHATTISGARH TEXT BOOK CORPORATION as per the byelaws of Government society is as under:- 1. To improve and promote all types of education especially primary, middle, high school and higher secondary education and to complete all related works. 2. To develop, print, publish and distribute all types of books for school and colleges, books for the teachers, training materials and undertake all related works. 3. To undertake all tasks related to improve academics, valuation issues in educational institutes. 4. To prepare useful literature for educational institutes and its printing, publishing and distribution. 5. To manufacture books approved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected by the Government, further to enhance its circulation of Book' CHHATTISGARH TEXT BOOK CORPORATION has opened various depots and has also given online facility to purchase from their site' 6. that, in case any book is left with the CHHATTISGARH TEXT BOOK CORPORATION after distribution or damage of book or in case the content provided by the SCERT is incorrect' only TBC is responsible for such losses incurred. Therefore, TBC has to write-off such losses in its books of Accounts. 7. that, CHHATTISGARH TEXT BOOK CORPORATION takes syllabus and Content from the Author i.e, SCERT and get it printed from printing agency and publishes such books for the purpose of distribution in market, and that, the whole process is related to supply of goods and thus falls under the HSN Code [4901] i.e. printed books' wherein the rate of tax is NIL, meaning therein that the supply of printed books is not subject to tax. 8. that, therefore at the cost of repetition, CHHATTISGARH TEXT BOOK CORPORATION submits that the whole process of CGTBC can be understood through an example where a very renowned author Mr. J.K. Mittal gets its Hand Book of GST published: 'Mr. J.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Government and copy of audit report of its C.A. (Charted Accountant) of the 2016-17. The applicant narrated the task of CHHATTISGARH TEXT BOOK CORPORATION as under:- Department of Education gives instructions to CHHATTISGARH TEXT BOOK CORPORATION to provide books in various schools. On receipt of such instructions from SCERT regarding contents, CHHATTISGARH TEXT BOOK CORPORATION, it purchases paper from paper manufactures for the purpose of printing of books. Then it provides such paper to job workers for printing the content as provided by SCERT along with the patterns/layout of the books which it specifically decides. CHHATTISGARH TEXT BOOK CORPORATION also circulates such books to its various depots which it has opened in many areas for distribution purpose. It also provides online facilities to purchasers to purchase books online from their website. Finally it distributes such books of different literature at economical prices or free of cost to all the Government/ private, subsidized and non-subsidized schools. In case any book is left with the CHHATTISGARH TEXT BOOK CORPORATION after distribution, such loss is bearable by CHHATTISGARH TEXT BOOK CORPORATION. In case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ters/DIET Principals as nominated Chhattisgarh School Education Department having knowledge primary/middle/higher education. xii. Two renowned people in the field of Education as nominated by the Chhattisgarh Government. 5.3 The above members of the council holds time to time Board meetings for rarifying the price of printed books of various academic classes. For price fixation of the books other expenses like paper and printing cost are also included apart from other miscellaneous expenses. For academic year 2018-19 to 2020-21 following other expenses are included in the price of books as approved in the Board meeting No. 54 held on 31-08-2018 :- Sr.No. Details of Item Percentage 1. Administrative expense 20 2. Transport expense 05 3. Expense on patterns/design/manufacture of books 02 4. Wastage/paper related to books 03 5. Amount of color proof/posi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of income of CHHATTISGARH TEXT BOOK CORPORATION is from sale of specified books. No income receipts are there from preparation of syllabus from State Government or Rajiv Gandhi Shiksha Mission, publishing works, transportation works. ii. The applicant also undertakes the work of writing off the books remaining after its distribution to the School Education Department and Rajiv Gandhi Shiksha Mission for every academic and class as per their demand. CHHATTISGARH TEXT BOOK CORPORATION incurs losses on account of write off, of books, which is shown in its books of account. In the Board meeting No. 41 date 15-09-2015 for the year 2015-16, the decision to write off 166 tons of books by means of open tender, of all the unused books of all 14 depots, has been taken. From the above facts it is clear that the State Government has constituted the CHHATTISGARH TEXT 300K CORPORATION for the above mentioned task in a continuous manner according to which CHHATTISGARH TEXT BOOK CORPORATION supplies the books owned and printed by it to School Education Department and Rajiv Gandhi Shiksha Mission every year whose syllabus is being approved by the experts. Section 2(30) of GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hts to the intangible inputs while the physical inputs including paper used for printing belongs to the printer, supply of printing [of the content supplied by the recipient of supply] would definitely qualify being treated as the principal supply and such supplies would constitute supply of service, which is not the case here. In the instant case the applicant, CHHATTISGARH TEXT BOOK CORPORATION has submitted that it provides such paper to job workers (printers) for getting the content printed as provided by SCERT along with the patterns/layout of the books which it specifically decides. Therefore in view of the evidences furnished before us and as discussed above, we are inclined to hold that in this case supply of goods is involved i.e. supply of specified printed educational books'/ which is the principal supply and accordingly we come to the considered conclusion that the said supply merits being treated as printed books as specified under serial no. 119 ( Printed books, including Braille books ) of notification no. 2/2017-State Tax (Rate) No. F-10-43/2017CT/V/70/ Dated 28-06-2017. In view of the aforesaid deliberations and discussions, we pass the following order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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