TaxTMI 
TaxTMI 
2025 (10) TMI 866
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of this judgment, WP(C) 21676/2021 is treated as the leading case, and the Exhibits and the respondents are hereinafter described based on the respective description in the said writ petition). The facts that led to the filing of these writ petitions are as follows: The petitioners' firm is a partnership firm running an offset printing press engaged in the printing and sales of brochures, books, magazines, posters, leaflets, photo books, notice etc. According to them, the content would be supplied by the customer as digital files or digital video through CD/DVD/SVD/Pen drive and the petitioners would be printing and supplying the same to the customers. The printing activity involves supply of goods as well as supply of services of goods. The supply of printing and supply of materials are natural bundle. While the content to be printed is supplied by the customers, the materials that required for printing the same, such as ink, papers etc. are provided by the petitioners. According to the petitioners, the said activity being a composite supply, is taxable at the rate which is applicable to the principle supply involved in the said transaction. It is also the case of the pe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ther than photo albums falls under HS code 4911 and attract 12% GST. Exhibit P2(b) is a clarification on taxability of printing contracts issued by the Department of Revenue, Ministry of Finance, where it is observed that in the case of supply of books, pamphlets, brochures, annual reports, and the like, where only 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 belong to the printer, supply of printing of the content supplied by the recipient of supply is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of service. It is further observed in Ext.P2(b) that in case of supply of printed envelopes, letter cards, printed boxes, issues, napkins, wall paper etc. falling under Chapter 48 or 49 of 1st Schedule of the Customs Tariff Act,1975, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content supplied by the recipient of s....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., brochures, notices, pictures, menu card, wedding card, posters, visiting card, photos etc. which are supplied by them based on the content furnished by the consumer. According to them, the same would fall under HSN Code 4911 which is taxable at 12%. Before going into the examination of issues arising in this case, it is profitable to understand the relevant statutory provisions. 7. The term 'composite supply' is defined under Section 2(30) of the CGST Act which reads as follows: "Composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply" 8. The term 'mixed supply' is defined under section 2(74) of the CGST Act which reads as follows: "Mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply" 9. Section 2(90) defines 'principal ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lm processing and post-production services, cf.999613." 14. Admittedly, one of the main activities of the petitioners is to print the photographs which are supplied to the petitioners by their respective customers in a digital form using the medium of CD, Pen drive or HDD etc. The said photographs will be printed by the petitioners using the paper and ink supplied by the petitioners, and through the printing machines owned by such petitioners. After such printing, the final product would be handed over to the customers of the petitioners. Going by the nature of the activity as referred to above, it can be seen that, the same includes supply of goods as well as supply of services. The supply of goods is in respect of the ink and paper used for such printing, whereas, supply of services is in respect of the activity of printing of those matters which are supplied to them by the customers in digital format. Since both the said elements viz; transfer of goods and supply of services are involved in the transaction, it is a composite supply, as defined under section 2(30) of the CGST Act. As per section 8, the tax liability on composite supply shall be on the principal supply. As per ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ransfer of goods. The issues involved in this writ petitions are to be considered by keeping the above aspect in mind. 16. Now when coming to the relevant entries which are actually applicable, the following aspects are to be noticed; As mentioned above, HSN Code 4911 specifically mention about printed materials, printed pictures, photographs etc. In Circular dated 1.1.2019, a copy of which is produced as Ext.P5(a) it is clarified that printing of pictures falls under service code 998386 which is meant for photographic and videographic processing services. SCN 998386, ie. photographic and videographic processing services, specifically provides that, it includes developing of negatives and printing of pictures and others according to customer specifications such as enlargement of negatives, slides, black and white processing, colour printing of images from film of digital media etc. Thus the code number 998386 specifically refers to the services rendered in the matter of printing of photographs which includes "colour printing of images from film of digital media". On the other hand, HSN Code 4911 contemplates for the supply of printed materials referred to therein. So, when caref....