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2018 (5) TMI 594
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....;ता भाग - ब), 'Sulekh Sarita Part 1-5' (सुलेख सरिता भाग - 1 से 5). Details of Question(s) on which Advance Ruling is requested: 4. Question No.1: What is the proper classification of the books 'Sulekh Sarita' (सुलेख सरिता)? Whether the books 'Sulekh Sarita' (सुलेख सरिता) are 'Printed Books' classifiable under 'HSN 4901 10 10' or are classifiable as 'Exercise Books' under 'HSN 4820' of the GST Tariff? 5. Question No.2: Whether any person who is dealing exclusively in supply of goods that are wholly exempt from tax, is required to take registration under the GST Act? Views of the Applicant on Question No. 1: 6. The books 'Sulekh Sarita Part-A' (सुलेख सरिता भाग - अ), 'Sulekh Sarita Part-B (सुलेख सरिता भाग - ब)' and 'Sulekh Sarita Part-1-5 (सु....
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.... (ii) Teaching the students about the art of word formation i.e (शब्द निर्माण सिखाना) (iii) Improving the vocabulary of the students i.e. (हिन्दी शब्दकोश का ज्ञान करवाना) (iv) हिन्दी की गिनती लिखना सिखाना. 9. That besides this, paragraph writing has been given in these books. The purpose of these books is to increase the thinking, imagination and expression capacity of the children. 10. The various topics given in the book specially 'Sulekh Sarita Part 1-5 like- "मेरा घर; मेरा परिवार; मेरा देश; जीवन मूल्य; सच्चा इंसा&#....
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....2366;ग - ब)' also qualify to be a 'picture book' falling under HSN 4903. These books, alternatively, even otherwise would be exempt from tax falling either under HSN 4901 or 4903. The primary level books of 'Sulekh Sarita Part 1-5' definitely qualify to be 'printed books' falling under HSN 4901. 15. Regarding, the relevance and importance of these books it is mentioned as these books are the first books which a child holds while beginning his process of learning. In the formative years the endeavour is to make learning a fun exercise for a child and therefore, the basic pre-nursery/ nursery and primary books are designed in such a manner that a child gets attracted towards them. For this purpose, the book contains pictures etc. to make the book more attractive. In the initial years a child begins to join dots, draw straight and curved lines and look at pictures as an entertainment which help the child identify the surroundings objects. This way of learning has been scientifically found to be best approach in developing a young brain of a child to control and co-ordinate fine figure movements. Thus these books are nothing else but 'printed books' for pre-nursery, nurs....
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....Act deals with persons liable for registration. Section 22 (1) states that every supplier shall be liable to be registered from where he makes a taxable supply, if his aggregate turn over in a financial year exceeds the taxable quantum of Rs. 20.00 lacs. 20. Section 23 of the CGST Act deals with person who is not liable for registration. As per Section 23 (1) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or are wholly exempt from tax then the person is not liable itself to register. Section 23 of the GST Act is reproduced here under for ready reference and the same reads as under: Section 23(1): The following persons shall not be liable to registration, namely:- (a) Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the integrated Goods and Services Tax Act. (b) An agriculturist, to the extent of supply of produce out of cultivation of land. 21. Section 24 of the CGST Act deals with compulsory registration in certain cases, Section 24 of the CGST Act reads as under: Section 24....
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....e of section 24. However, the legislature has consciously choose to override the provision of section 22 (1) and have deliberately silent as far as section 23 is concerned. 25. Thus the applicant which is a body corporate (a Private Limited Company) and thus liable for reverse charge as per Notification No. 13/2017 - Central Tax (Rate) dated 28.06.2017, but dealing exclusively in 'printed books' (which is a wholly exempted item) then whether the applicant would be liable for registration or not? 26. Applying the principle of harmonious constructions and on plain reading of section 22, section 23 and section 24, it appears that section 24 does not override section 23, which is an independent code in itself and thus a person dealing exclusively in supply of goods or services or both that are not liable to tax or wholly exempt from tax would not be required to take a registration under the GST Acts. Prayer of the Applicant: 27. That the product supplied by the applicant i.e. 'Sulekh Sarita Part-A', 'Sulekh Sarita Part-B' and 'Sulekh Sarita Part 1-5' be classified as 'printed books' falling under HSN 4901 or as 'picture books' falling under 'HSN 4903' and consequently cover....
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....lance they are more akin to handwriting "note books" for practising rather than "work books" containing printed exercise. 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 principle for classification of Exercise Books under heading 4820 of erstwhile CETA, 1985. (iii) Printed work books on the other hand are books where printing is not merely incidental to the primary use. HSN Explanatory notes (A) to the heading 49.01 reads as, "Books and booklets consisting essentially of textual matter of any kind, and printed in any language or characters....include....textbooks (including educational workbooks sometimes called writing books), with or without narrative texts, which contains questions or exercises (usually with spaces for completion in manuscript)..." Thus, printed work books containing questions followed by spaces for writing or other exercises would fall within the scope of Chapter 49. The said goods are diff....
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.... file covers, manifold business forms, interleaved carbon sets and other articles of stationery, of paper or paperboard; albums for samples or for collection and book covers, of paper or paperboard. 4820.20 - Exercise books (2) Exercise Books. These may simply contain sheets of lined paper but may also include printed examples of handwriting for copying in manuscript. Educational workbooks, sometimes called writing books, with or without narrative texts, which contain printed textual questions or exercises not incidental to their primary use as workbooks and usually with spaces for completion in manuscript are, however, excluded (heading 49.01). Children's workbooks consisting essentially of pictures, with complementary texts, for writing or other exercise are also excluded (heading 49.03). Some articles of this heading often contain a considerable amount of printed matter but remain classified in this heading (and not in Chapter 49), provided that the printing is incidental to their primary use, for example, on forms (essentially for completion in manuscript or typescript) and diaries (essentially for writing). 37. The HSN notes for Heading 4901 reads as under: 4....
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.... pictures, accompanied by captions or summary narratives related to the individual pictures. It also includes children's workbooks consisting essentially of pictures with complementary texts, for writing or other exercises. This heading also includes children's drawing or colouring books. These consist mainly of bound pages (sometimes in the form of detachable postcards) containing simple pictures for copying, or outlines of pictures, with or without printed instructions, for completion by drawing or colouring; sometimes coloured illustrations for guidance are incorporated. They also include similar books with "invisible" outlines or colour which can be made visible by rubbing with a pencil or applying water with a paint brush, and also books in which the small amounts of water colour required for colouring are contained in the books (e.g., in the form of a palette). 39. The issue of classification of text books and printed work text books was subject matter of WP(C) No. 7198 of 2016 before the Hon'ble High Court of Delhi. It was claimed by the petitioner that the said goods are appropriately classifiable in Chapter 49 of the Central Excise Tariff Act, whereas the department ....