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2020 (2) TMI 896 - AAAR - GSTClassification of goods - ‘Access Card’ printed and supplied by the Appellant based on the contents provided by their customers - whether classifiable under HSN code 4901 10 20 under the description brochures, leaflets and similar printed matter? - scope of supply - principal supply or not - benefit of N/N. 1/2017-CT (Rate) Sl.No.201 & 1/2017-IT (Rate) Sl.No.201 dated 28.06.2017 and SGST/UTGST Notifications - challenge to AAR decision. HELD THAT:- The activity undertaken by the Appellant is one which brings into existence a distinct item i.e “Access Card” which is used by the recipient to distribute to the pilgrims. This card is a bar coded multi-colour no-tear card. Printing is an activity which results in the emergence of the “Access card”. Printing is an activity which is ancillary to the emergence of the Access card. The printing activity undertaken by the Appellant is for the purpose of bringing into existence the Access card. The Access card is put to farther use by the recipient M/s Trilok Security Systems in the performance of the Mass Queue Management System services. The intention of the Appellant’s activity is to bring into existence an Access card for which printing is ancillary. The resultant product “Access card” is therefore a product of the printing industry. The lower Authority has relied on the CBIC Circular No 11/11/2017-GST dated 20.10.2017 to hold that the activity undertaken by the Appellant is a supply of service. The principal supply in the case of the Appellant is not the printing service but a supply of the Access cards which is a product emerging out of the printing activity. Therefore, the provisions of Para 5 of the Board’s Circular will apply in this case and the printing and supply of Access cards by the Appellant is a supply of goods. We therefore set aside the ruling given by the lower Authority. The Access cards being printed cards in single sheets are classifiable under sub-heading 4901 10 20 under the category of pamphlets, booklets, brochures, leaflets and similar printed matter. They will fall under the description of the term ‘leaflet’ under 4901 10 20 - In the GST rate Notification No 01/2017 CT (R) dated 28.06.2017, “Brochures, leaflets and similar printed matter, whether or not in single sheets are covered under entry SI.No 201 of Schedule I with rate of 2.5% CGST and 2.5% SGST. The ruling of AAR set aside.
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