TaxTMI 
TaxTMI 
2026 (5) TMI 975
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....is filed against the impugned Order-in-Original No.14/2012-13 dated 24.01.2013; Appeal No. ST/20400/2015 against Order-in-Original No.17/2014-15 dated 21.11.2014 and Appeal No. ST/20971/2017 against Order-in-Original No. BLR-EXCUS-003-COM-35-16-17 dated 31.03.2017 passed by the Commissioner of Central Excise and Service Tax, Bengaluru. 2. Heard both sides and perused the records. We have also considered the submissions made by the appellant and the revenue during the course of the hearings. The issue to be decided in these appeals is whether the supply of the printers and multifunctional printers to various clients for printing during the disputed period from May 2008 to December 2010 and from April 2011 to June 2012 under business model....
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....nto Agreements with various customers for providing 'Managed Printing Solutions'. In terms of the Agreement, the appellant delivers and installs Printers and Multifunctional Devices (MFD) at the customer's premises, which are used by the customer as per their needs and requirements. The appellant charges the customers either - on per page printed basis, which is determined through an inbuilt mechanism in the printer that counts the number of pages printed, or the minimum commitment charges, whichever is higher on a monthly/quarterly basis which are accounted under the heading 'Sales and Services' in the books of accounts. In this Onsite model, the ownership of the printer belongs to the appellant, and the customer does not own the same at a....
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.... deemed sale of goods [Article 366(29A)(d) of the Constitution of India]. Transfer of right to use involves transfer of both possession and control of the goods to the user of the goods. 4.4.2 Excavators, wheel loaders, dump trucks, crawler carriers, compaction equipment, cranes, etc., offshore construction vessels & barges, geo-technical vessels, tug and barge flotillas, rigs and high value machineries are supplied for use, with no legal right of possession and effective control. Transaction of allowing another person to use the goods, without giving legal right of possession and effective control, not being treated as sale of goods, is treated as service. 4.4.3 Proposal is to levy service tax on such services provided in....
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....rinting, digitisation of records, voter list printing etc., and these projects are done at the appellant's own premises. The appellant enters into an Agreement with the Government of Karnataka for bulk printing and also does work orders for Electronics Corporation of Tamil Nadu (ELCOT) for printing various documents as required by the clients. In the case of OFE Model, the customer owns the printer either from the appellant or any other vendor and the appellant only supports the customers in maintaining and providing consumable and spares by discharging VAT on the material cost and service tax on the balance value of the services rendered by the appellant. The Commissioner in the impugned order relying on the decision of the Hon'ble Supreme....
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....the transaction as supply of tangible goods does not arise since the entire activity in the case of Offsite Model is undertaken at the premises of the appellant and he is eligible for the benefit of No.12/2003-ST dated 20.06.2003. 5. Similarly, in the case of OFE Model, the owners of the printers are the customers and the appellant only supports in providing consumables and in maintaining the printers owned by the customers. Therefore, as rightly claimed by the appellant, the benefit of Notification No.12/2003-ST dated 20.06.2003 is to be extended by deducting the cost of material from the gross value as discussed in the paras above in the case of Offsite Model. 6. We find that in appeal No. ST/20400/2015, the Commissioner in the impu....