2018 (6) TMI 519

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....ply of goods? (ii) If yes, whether it is classifiable under chapter heading 4911 of first schedule to Customs Tariff Act, 1975?" They have submitted a copy of Challan evidencing payment of application fee of Rs. 10,000/-. They have also submitted their additional submissions vide their letter dated 03-04-2018. 3. The applicant has further submitted detailed statement of the relevant facts having a bearing on the question (s) on which Advance Ruling is sought for in Annexure -I as under:- (i) That M/s Macro Media Digital Imaging Private Limited (herein after referred to as the 'Applicant') are engaged in the business of manufacturing and sale of digital printed materials. (ii) Applicant manufactures printed trade advertising material like banner flex using various inputs namely ink, paper etc. (iii) Preparation of such printed material would be undertaken as per the customer specification wherein customers specify the sizes of the advertising material, location of the advertising material to be displayed etc. (iv) Except specifying the specifications and designs to be printed, clients/customers of Applicant does not provide any materials and all required....

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....le property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be serviced before supply or under a contract of supply" ii. Similarly the word 'services' is defined u/s 2(102) of CGST Act, ibid which is extracted below: iii. "(102) "services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged," g. On conjoint reading of the above two definitions, Applicant understands that 'goods' was defined to mean every kind of movable property with specific exclusions and inclusions (which are not relevant to the present context) and 'service' was defined to mean anything other than goods. Therefore, once anything falls under the ambit of 'goods', it does not become 'services' and vice -versa. h. Essential condition to classify anything as 'goods' is that it should be a movable property. There....

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....ordingly, rate of tax shall be determined as per CGST Notification No. 1/2017 -Central Tax (Rate) dt. 28-06-2017 (corresponding Notification No. 1/2017 -State Tax (Rate) dt. 29-06-2017 for SGST rate and also 1/2017 - Integrated tax (Rate), dt. 28-06-2017 for IGST rate). p. On perusal of the above notifications, Applicant understands that the goods have been categorized under six schedules based on description and HSN where each schedule is attracting different rate of tax. q. In term of explanation (iii) and (iv) to Notification No. 1/2017 - Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. r. On perusal of the rate schedules in the aforesaid notifications and also the various chapters in the First Schedule to the Customs Tariff Act, 1975, Applicant u....

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.... honourable authority on the question as to,- (i) Whether the printed advertisement materials classifiable as 'supply of goods'? (ii) If yes, whether it is classifiable under chapter heading 4911 of first schedule to Customs tariff Act, 1975? (iii) Any consequential questions that may arise during the hearing. 5. During personal hearing held on 03-04-2018 @ 3.00 P.M the Authorized Representative has presented their case and submitted that the printed advertisement materials are classifiable as Goods under Section 2(52) GST law and such Goods falls under Tariff Heading 4911 and liable to GST rate @ 12%. They filed further submissions as given below:- (i) Applicant supplies the printed trade advertising materials (i.e. Banner flex), which is freely movable from one place to another thereby it becomes 'movable property' and consequently falls under the ambit of 'goods' under Section 2(52), ibid. Once anything falls under the ambit of 'goods' as defined under Section 2(52) of CGST Act, 2017 it does not become 'services' defined under section 2 (102) of CGST Act, 2017 and vice-versa. The above is further supported ....