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2021 (3) TMI 499 - AAAR - GSTClassification of supply - supply of services or supply of goods - composite supply or not - principal supply or not - transaction of printing of content provided by the customer on PVC banners and supply of such printed trade advertisement - trade advertisement material - Classification and applicable rate of GST on the supply of such trade advertisement material if the transaction is that of a supply of Services - challenge to AAR decision - it was held by AAR, Tamil Nadu that the supply of printing services by the applicant are classifiable under SAC 998912. The applicable rates are CGST @ 9% and SGST C9% from 01.07.2017 to 22.08.2017 and 22.08.2017 to 13.10.2017 vide entry at Sl.No. 27 & 27(ii) respectively and effective from 13.10.2017, the applicable tax rate is CGST cu 6% and SGST 4 6% as per the substituted entry at Sl.No. 27 (i). HELD THAT:- The Purchase Order is made for ‘Printing of content’ on a particular ‘media’ and the Tax Invoice describes the item as ‘Printing and Supply of Trade Advertisement Material’. From the write-up on business activities and process-Scope of Macromedia furnished by the appellant, it is seen that their Scope in the supply is to get the ready- to- print design from customer, check quality of design and printability on the specified sizes and applications like outdoor print, indoor print or signage print and printing the finalized drafts and delivering the same either to the corporates/agencies or the vendors. Thus, it is seen that the appellant owns the media(material) in which the digital content received by them for printing is printed and the supply of such printed goods is made to the client. Reliance has been placed in the case of STATE OF TAMIL NADU VERSUS ANANDAM VISWANATHAN [1989 (1) TMI 359 - SUPREME COURT] - the decision has been pronounced to decide whether the printing of the content received from the clients on the material Of the respondents and supply of such printed material is sale of goods under the sales tax provisions. The definition of ‘Goods’ remains the same in the Sale Tax provisions and the GST Law and therefore the ratio of the above decision can be applied to the case at hand. It is evident that the Purchase Order is issued for ‘Printing’ the ‘Copyrighted Digital Content of the client’ in the desired material. The material blanks’ owned by the appellant are transferred to the client as Trade Advertisement material’ after undertaking Printing of the Content of the client on the blanks. The appellant is vested with and undertakes the printing of the content, the copyright of which rests with the recipient and the copyright always rests only with the client and the appellant do not have any propriety rights to the content - Once it is held that the activity is a contract for work or service wherein there is also transfer of property in goods incidentally then it is a composite supply as per Section 8 of the GST Act. Ongoing through the Purchase Order, write-up giving the scope of the appellant, it is evident that the client desires the print of the content in a particular media and the contract with the appellant is not for the materials they own - the activity of Printing of the content is the principal supply during which the property held by the appellant in the media of such print gets transferred to their client incidentally. The decision of Advance Ruling Authority upheld.
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