TaxTMI 
TaxTMI 
2019 (7) TMI 1333
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....me except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- "Statement of relevant facts having a bearing on the question(s) raised : 1.1. The Applicant is a multifaceted retail, wholesale and institutional Sales Company that offers a range of products, solutions, services and equipment related to digital printing. 1.2. The Applicant operates a retail chain of 19 digital labs and studios in the brand name of "Colo Photo Shop", with 15 dealer outlets and one distribution hub in Mumbai. 1.3. The Applicant is associated to more than 25,000 photographers, who are in the profession of photography and having their studios, color labs or they are freelancer photographers. 1.4. The Photographers & retail customers shoot images through Digital Cameras & provide the photos to Applican....
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....ers on a recorded media. The processing is done by the professionals themselves. The Applicant merely prints it. Hence, the applicant cannot be said to be providing services as per SAC 998386. 2. The Applicant states on a technical grounds also mere printing of the photographs cannot be termed as photographic processing. Something more than mere printing is required to be called as photographic processing. The Applicant is not carrying out any processing in the present case. Thus, the said activity will be covered under SAC 998912 only. 3. The Applicant craves leave to add, alter or amend the grounds at the time of hearing . Additional submissions on 07.05.2019. 1.4. The Photographers shoot images through Digital Cameras, edit it at their end only & provide the photos to Applicant on Pen Drive, CD, Memory Card, or in any other storage media. 1.5 Applicant provides the photographers with printing services in its high equipped digital labs. Applicant has invested in the advanced digital lab machines such as Nortisu QSS 3202 Applicants prints the photographs in various sizes as per the requirement of the photographers in its digital lab machine 1.6 The Applicant also....
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....inting of photographs from the content provided on a media by the customers is classifiable under 998912. 4.2. Applicant submits that the said AAR of Hon'ble WB Authority is directly applicable in the facts of the present case. Thus, the said should be followed. Alternatively, it may lead to dis-parity & discrimination. The same transaction in different States will be given a different meaning & liable to GST at different rates. This is not permissible in a law. Hence, applicant's activity is classifiable under the SAC 998912 liable to GST at 12%. 5. Clarification issued by the CBIC vide Circular No. 84/03/2019-GsT dated 01.01.2019 is not applicable in the present case. 5.1. The Applicant submits that, the CBIC vide its Circular dated 01.01.2019 has clarified on the activity of service of printing of pictures covered under SAC 998386. In the said Circular, after relying on the Explanatory Notes to the Scheme of Classification of Services, the CBIC has clarifies that colour printing of images from film or digital media is covered under SAC 998386 liable to GST@ 18%. 5,2. The Applicant submits that the said Clarification of CBIC is not applicable in the facts of the prese....
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....ices 352 998384 Specialty Photography services 353 998385 Restoration and retouching services of photography 354 998386 Photographic and videographic processing services 355 998387 Other photography and videography and their processing services nowhere else classified 547 Group 99891 Publishing, printing and reproduction services 548 998911 Publishing, on a fee or contract basis 549 998912 Printing and reproduction services of recorded media, on a fee or contract basis 6.4. Applicant submits that from a plain understanding of the Applicant, the present activity carried out by the Applicant qualifies as printing services. The said activity is provided by the advanced digital lab printing machines employed by the Applicant. 6.5. Applicant does not provide the photographic processing services. The intention of the parties is to get the printing done through the advanced lab printing machines and not photographic processing: 6.6. Thus, from a plain reading of the competing entries in the Scheme of Classific....
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....avourable to the assessee needs to be adopted." 03. CONTENTION - AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- "M/s. Colo Color, (hereinafter referred to as the applicant) has filed above said application under Section 98 of the CGST Act, 2017 read with Rule 1040) of the CGST Rules, 2017 seeking advance ruling on. i) Whether the activity of merely printing or reproducing the content given by the photographers/ retail customers on pen drive, CD, memory card or any other storage media will be classifiable under Service Code 998912 or 998386? 2. The Applicant was registered under erstwhile Service Tax regime (Finance Act, 1994) having Service Tax Registration No. AIEPR1584QSD001 for providing Photographic Services. At present the applicant is registered under the Central Goods and Service Tax Act, 2017 with GSTIN 27AIEPR1584Q1ZH for providing the same services. 3. The applicant receives images and photos in Pen Drive, CD, Memory Card or in any other storage Media from Photographers/ Retail Customers. 4. The applicant provides the photographers/ retail customers printing services in its highly equipped digital labs. ....
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....m master copies of videotapes, laser discs, DVD or other media with motion pictures and other video recordings; iii. reproduction services from master copies of software and data on all kind of disks, tapes, cartridges and other media This service code does not include: - colour printing of images from film or digital media, cf 998386 - audio and video production services, cf. 999613 4. Further the CBIC vide Circular No. 84/03/2019 GST issued under F.No. 354/428/2018-TRU dated 01.01.2019 clarified the issue related to classification of printing of picture covered under the service code 998386. The relevant portion of the said circular is reproduced below:- i) It has been brought to the notice of the Board that the service of "printing of pictures" correctly covered under service code 998386 - "Photographic and video graphic processing services" is being classified by trade under service code 998912 - "Printing and reproduction services of recorded media, on a fee or contract basis". The two service codes attract different GST rate of 18% and 12% respectively and therefore wrong classification may lead to short payment of GST. ii) The mat....
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....Considering the fact in the foregoing paragraph & clarification issued by the CBIC in Circular No. 84/03/2019 GST issued under F. No. 354/428/2018-TRU did 01.01.2019 the "activity of merely printing or reproducing the content given by the photographers/ retail customers on pen drive, CD, memory card or any other storage media" is classifiable under Service Code 998386. 8. This issue is with the approval of the Principal Commissioner of CGST & Central Excise, Mumbai Central." 04. HEARING Preliminary hearing in the matter was held on 02.04.2019. Sh. Rahul Thakar, Advocate, appeared and requested for admission of their application. Jurisdictional Officer Sh. Bhavesh Nandan, Supdt., Range-II, Mumbai Central also appeared and made written submissions. The application was admitted and called for final hearing on 07.05.2019. Sh. Rahul Thakar, Advocate, appeared, made oral and written submissions. Jurisdictional Officer Sh. Prabhakar Shetty, Supdt., also appeared & made written submissions. We heard both the sides. 05. OBSERVATIONS AND FINDINGS: 5.1. We have gone through the facts of the case, written submissions and provisions of notification and clarification circular issu....
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....rinting and reproduction services of recorded media, on a fee or contract basis" of the scheme of classification of service annexed to notification No. 11/2017-Central Tax(Rate) dated 28.06.2018. The service of printing of pictures attracts GST@ 18% falling under item (ii), against serial number 21 of the Table in notification No. 11/2017-CentraI Tax (Rate) dated 28.06.2017." 5.5 From the submissions made by the applicant we find the Applicant is merely printing or reproducing the content given by the photographers or retail customers on a recorded media like pen drive, CD, Memory card or other storage area, etc. The editing or processing is done by the professionals or retail customers themselves. The Applicant merely does colour printing of images from film or digital media and supplies colour prints to the customers. The abovementioned Circular very clearly states that such colour printing of images from film or digital media of 998386 are exclusively excluded from the service code 998912 i.e. Printing and reproduction services of recorded media, on a fee or contract basis". Hence applying the provisions of the said Circular to the subject case at hand, we find that the appli....