9911796707
TMI Blog2019 (11) TMI 1566X X X X Extracts X X X X X X X X Extracts X X X X ..... Trade Advertising Material i.e. banner/billboard etc., and thus the nature of the material changes. Further the applicant does not own or retain the usage rights of intangible inputs. In view of the foregoing the activity of printing of the content, supplied by the recipient, on the PVC material becomes principal supply and such supply constitute supply of service falling under chapter heading 9989 - The Applicant referred to several judgments of the apex court and the Tribunal, which are all related to the classification of the goods being supplied (Trade Advertising Material) as to whether they are to be classified under Chapter 39 or 49 of the Tariff Act. This authority does not dispute the classification of the said goods under Chapter 49. However, in the instant case such supplies are ancillary to the principal supply of Printing Service. - HAR/HAAR/R/2019-20/14 - - - Dated:- 25-11-2019 - SANGEETA KARMAKAR AND MADHUBALA MEMBER Present for the Applicant : Sh. Tarun Sharma (CA) Sh. Vikas Verma 1. Brief submission of the applicant: 1.1 M/s Macro Media Digital Imaging Pvt. Ltd. (hereinafter referred to as Applicant ) having its office at Ground and First ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mages/written text in patches and later joins the said patches to make the full trade advertisement. (iii) Supply of such printed trade advertisement to the shipping address mentioned in the purchase order. 1.5 The applicant emphasized to be specifically noted that designing and graphics of the advertisements are not done by the applicant. The applicant is provided with the designed trade advertisements by the customers. The applicant merely sources the desired PVC material (blank) from independent supplier and undertakes the activity of printing on the material. Samples of the PVC material sourced by the applicant, and printed trade advertisement material supplied by the applicant have been annexed hereto. 1.6 That billing format of the invoices raised by the applicant on the customers is such that in the description field, applicant specifies charges on two accounts i.e. printing and supply , wherein the former represents the service activity of printing carried out by the applicant and latter represents the physical supply of printed trade advertisements on the PVC material. Sample invoices raised by the applicant have been enclosed. 1.7 That under the erstwhil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2017. Further the title of the impugned material is being transferred and hence the supply amounts to supply of goods in terms of Section 9 of the CGST Act, 2017. The applicant intend to place reliance on the TRU circular No. 11/11/2017-GST dated 20.10.2017, specifically para 5. 3.2 The applicant further contends that the supply of trade advertisements involves multiple supplies hence amounts to composite supply , and endeavors to support their claim by quoting many case laws/circulars etc., concluding that their activity is a composite supply where the principal supply is of goods, in terms of section 8 of the CGST Act 2017. 3.3 The applicant, with regard to the classification of their supply, on consideration of the same as supply of goods, quoting General Interpretation Rules, Section notes/Chapter notes, placing reliance on various case laws, some of which are relevant to pre-GST regime concludes that their supply merits classification under heading 4911 of CTA 1975, as the same is specifically provided for trade advertising material and hence is taxable @12%, in terms of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017, as amended. Further, even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. 4.6 Principal supply, in terms of Section 2 (90) of CGST Act 2017, is supply of goods or services which constitutes the predominant element of composite supply and to which any other supply forming part of that composite supply. 4.7 Para 4 of the circular specifies that in the case of printing of books, pamphlets, brochures, annual reports, and the like, the supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service, falling under chapter heading 9989, subject to the following conditions namely- (a) The content is supplied by the publisher or the person who owns the usage rights to the intangible inputs. (b) The physical inputs including paper used for printing belong to the printer. 4.8 Para 5 of the circular specifies that in the case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc., falling under Chapter 48 or 49, printed with design, logo etc., supplied by the recipient of goods but m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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