TMI Blog2019 (2) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... ner 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. Chhattisgarh Text Book Corporation performs the works of publishing and distribution of books, consequent to getting it printed, as per Order No. F-10-12/2014/20, dated 13-4-2005 of School Education Department. The Chhattisgarh Text Book Corporation has been registered on 11-8-2004 as per Chhattisgarh Society Registration Act, 1973. It is the permanent job of Chhattisgarh Text Book Corporation to prepare specified educational books every year as per the syllabus as approved by the experts, get the books printed class-wise and to transport the same to specified schools. Separate amount is being determined for every work according to which the sale price of specified educational books is fixed. In 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... School Education Department CG such as Rajiv Gandhi Siksha Mission/SCERT/office of District education officer etc. would tantamount to supply of goods and will fall under the zero rated goods. 4. Whether the books which the Chhattisgarh Text Book Corporation is supplying as per instruction of various agencies of School Education Department CG such as Rajiv Gandhi Siksha Mission/SCERT/office of District education officer etc. would tantamount to supply of service 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. Chhattisgarh 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 13-4-2005 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 edu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G Text Book, Content Owner as SCERT and the printer's name who has actually printed the books. 4. that, to carry such printing and publishing work, Chhattisgarh Text Book Corporation purchase papers from paper manufacturers and provide such papers to job workers for printing the content as provided by SCERT along with the patterns/ layout of the books which TBC specifically decides. 5. that, then TBC circulates such books in different areas as directed 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us for hearing on 29-11-2018 and reiterated their contention. They also furnished a written submission dated 29-11-2018, which has been taken on record. The applicant has submitted its registration certificate as approved by Chhattisgarh Society Act, 1973 w.e.f. 11-8-2004. The applicant has submitted society registration certificate, copy of byelaws of society, copy of minutes of Board meeting, copy of sale invoices submitted to the State Government and copy of audit report of its C.A. (Charted Accountant) of 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 dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd of Secondary Education. (vi) Controller, Government Press, Chhattisgarh. (vii) Director, State Council of Education, Research and Training. (viii) Commissioner/ Director, Department of Welfare of Schedule Caste, Schedule Tribe and Other Backward classes. (ix) A representative as nominated by NCERT. (x) A Principal nominated by Chhattisgarh School Education Department. (xi) Three Teachers/ Head Masters/ DIET Principals as nominated by Chhattisgarh School Education Department having knowledge of 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 31-8-2018: - Sr. No. Details of Item Percentage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Other sales - 4.49 3.87 6.32 Total 13818.72 11831.49 13055.27 17214.91 Income from other sources 174.68 174.68 - 527.52 As per the above information the major source 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 accounts. In the Board meeting No. 41, dated 15-9-2015 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. Fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l supply. It is to be noted that in case of composite supplies, taxability is determined by the principal supply. Here from the details put forth by the applicant before us, we observe 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 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. 6. 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 educatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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