Tax Management India.Com

Home Page

Home List
← Previous Next →

2018 (10) TMI 746

Classification of supply - Lab Manual comprising bulk of instructional /educational printed material - whether printing is merely incidental to the primary use or not? - Whether ‘Lab manual’ written by authors as prescribed by Educational Boards and which also contains, apart from chapter wise printed material and printed question and answers, some blank sheets / papers for exercise by students, would be classified under GST Tariff heading 4901 as ‘Printed Books’ which carries Nil rate of tax or would it be classified under the GST tariff heading 4820 which attracts tax @ of 12% (CGST + SGST) under the description ‘ Laboratory Notebooks’? - Held that:- ‘Lab Manual’ is primarily a printed book in the major part with a smaller, yet not insignificant part dedicated to providing blank space to the students to do his/her written exercises. - It is seen that this issue has been discussed in CBEC Circulars no- 1052/01/2017-cx dated 23.02.2017 and No. 1057/06/2017-cx dated 07.07.2017. As per Circular dated 07.07.2017, in case of Printed workbooks, where printing is not merely incidental to the primary use of the goods, it has been held such goods classified under printed workbo .....

X X X X X X X

Full Text of the Document

X X X X X X X

e his letter dated 17- 05-2018 stated that the products supplied by the Tax Applicant are to be covered under chapter 4901 and not under 4820 in light of Circular No. 1052/01/2017-CX dated 23-02- 2017 and Circular No. 1057/06/2017-CX. A personal hearing of the applicant in this regard was held on 16.07.2018 before the Advance Ruling Authority, Punjab on which date Sh. Naresh Chawla, Advocate appeared on behalf of the applicant. The questions raised by the applicant have been discussed at length. The counsel for the dealer had submitted a detailed written submission, which is reproduced as under. Written submissions & synopsis by the Applicant in respect of application for Advance Ruling 1. The applicant industry is manufacturing the Lab Manuals called Books printed/published in accordance with the specified syllabus issued by CBSE for class VI to class XII which is written by the authors as per prescription by Educational Boards. It comprises of the entire syllabus of the practical subject described and consists of the comprehensive study material covering syllabus, questions/answers part & some leafs for the use of the students. The printed material is in book form which i .....

X X X X X X X

Full Text of the Document

X X X X X X X

le 4 of general rule for interpretation of the schedule, goods must be classified under the heading appropriate to the goods to which they are most akin. 5. Circular no. 1057/06/2017-CX dt, 07.07.2017 has classified the printed work books, exercise book as follow:- 2. The issue has been examined. Exercise Books have been explained in HSN under explanatory note (2) to Heading 48.20 as, These may simply contain sheets of lined paper but may also include printed examples of handwriting for copying in manuscript . Such exercise Books are specifically classified under heading 4820 of the erstwhile CETA, 1985. These are nothing but stationary items having blank pages with lines for writing and may also include printed texts for copying manually In common parlance they are more akin to handwriting note books for practicing rather than work books containing printed exercises. This definition of Exercise Books is in harmony with other items specified under Chapter Heading 4820 of erstwhile CETA, 1985 such as registers, note books, diaries, letter pads etc. where printing is incidental to their primary use i.e. writing. The fact that printing is incidental to their primary use is the guiding .....

X X X X X X X

Full Text of the Document

X X X X X X X

ise books in Chapter 48 (4820) of Central Excise Tariff Act. The Hon ble High Court of Delhi vide order dated 31.08.2016 = 2016 (9) TMI 323 - DELHI HIGH COURT had directed CBEC to examine the matter and pass appropriate order. Accordingly, CBEC has clarified the issue vide Circular No. 1057/6/2017 - CX dated 07.07.2017. The goods covered under the relevant headings have been distinguished by Circular No. 1057/6/2017 - CX dated 07.07.2017. The guiding principle for classification has also been laid down. From the above, it is observed that the relevant headings 49.01 cover generally the following goods: Heading 49.01: This heading generally covers textual reading material/books including text- books, catalogues, prayer books etc. The heading 49.01 specifically covers educational workbooks or writing books. In the case of certain goods of heading 49.01 e.g. workbooks, there may be space for writing in addition to the printed text but printing is of primary use and space for writing is incidental. On the contrary, in case of certain goods of heading 48.20 e.g. diaries, exercise books, there may be considerable amount of printed matter but the printing is incidental to their primary us .....

X X X X X X X

Full Text of the Document

X X X X X X X

ely incidental to the primary use, but actually forms a major part of the book and fulfills the primary objective of imparting knowledge to the student. Rather writing becomes the incidental part in the case on hand as the blank pages providing space to the students to write form a lesser part of the Lab manual and enables the students to write in the context of what they have learnt in the major printed instructional material of the book. Hence it becomes clear after balancing the facts of the present case with the instructions related to classification given in the said Circular dated 07.07.2017, that the Lab Manuals being published by the applicant are rightly classifiable under the GST Tariff heading 4901 as printed books and would consequently carry Nil rate of tax which is presently applicable to the said heading. 4. It is further seen that a similar clarification relating to classification of practical notebooks had also been issued earlier vide Circular no 1052/01/2017-CX dated 23.02.2017 wherein it had been categorically mentioned that notebooks containing some texts, questions and spaces for exercises would be classified under heading 4901. In the present case the Lab Man .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →