TaxTMI 
TaxTMI 
2019 (8) TMI 1156
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 The Applicant is stated to be engaged in the business of printing of trade advertisement material. It prints the content provided by the recipient on the base of polyvinyl chloride cloth, paper etc. The Applicant provides the printi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sements were manufactured goods classifiable under heading 4911 of the Central Excise Tariff Act, 1985 (hereinafter the 1985 Act). 2.3 The Applicant argues that 'service', as defined under section 2(102) of the GST Act, includes the residual transactions that cannot be treated as supply of goods, money or securities. It means, leaving aside money and securities, every transaction should first be examined on the yardstick of 'goods', as defined under section 2(52) of the GST Act. If it fails the test, the transaction may qualify as a supply of 'service'. The essential condition to classify anything as 'goods' is that it should be a movable property and Printed trade advertising material, being a movable property, is to be treated as 'goods'....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e wanted to avail printing services, the recipient would have purchased the blank PVC material from other sources and provided it to the Applicant for printing. Instead, the recipient places an order for the composite supply of the trade advertisement material. It establishes that the recipient intends to receive the goods in the form of trade advertisement. Supply of goods, therefore, constitutes the predominant element of the composite supply. 2.6 The Applicant further argues that the element of printing is ancillary to the supply of goods in the form of trade advertisement. The Applicant merely loads the content in the digital image printer, which does not involve any special skill or artwork. 2.7 The Applicant, therefore, concludes th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Media Digital Imaging Pvt Ltd (2018) 6 TMI 519]. 3. Observation & Findings of the Authority 3.1 There is no dispute that the Applicant's supply is a composite contract - a transaction involving both services and transfer of property in goods, and the two are inseparable in the execution of the contract. It was a works contract in terms of section 2(57)(d) of the West Bengal Value Added Tax Act, 2003. The legal fiction created by insertion of Art 366(29A) through the 46th Amendment of the Constitution enabled the State Government to split up such contracts into a contract for the sale of goods and a service contract, and levy VAT on the sale of goods. 3.2 Works contract, as defined in 2(119) of the GST Act, excludes from its ambit all suc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ising material. 3.4 In its Circular No. 11/11/2017-GST dated 20/10/2017, the CBIC clarifies the treatment of various composite printing contracts. In all these contracts, the recipient provides the content for printing and the printer supplier the physical inputs. All the printed goods are classifiable under Chapters 48 and 49 of the Tariff Act. The difference, however, lies in the customer contemplating or not separate rights and use arising out of the supply of the goods. In the case of printing of books, pamphlets, annual reports, etc., the goods have no better utility than carrying the printed matter. On the other hand, envelopes, letter cards, napkins, wallpaper and the like have separate use as goods apart from carrying the design or....