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of <h1>Classifying Bundled Products for Tax: Key Principles from Xerox India & Bakelite Hylam Cases on Cost and Functionality.</h1> Determining the essential character of a naturally bundled product involves two main principles: the cost of components and functionality. The first principle assesses which component has the highest value, as demonstrated in the Xerox India Ltd. case, where the printing function was deemed the primary feature due to its significant cost allocation. The second principle considers the component that provides the product's basic function, as seen in the Bakelite Hylam Ltd. case, where the rigidity and resistance imparted by resins determined the classification of decorative laminated sheets. These principles guide the classification of products for service tax purposes.
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