Page 142 - GSTL_23rd July 2020_Vol 38_Part 4

508 GST LAW TIMES [ Vol. 38
The Tier (“Click”) model, includes supplies made and invoices raised based on
the clicks performed (i.e. actual print) by the final customer. “Supplies” here re-
fers to the Electroink and consumables comprising of blanket, photo imaging
plate, binary ink developer, HP imaging oil, blanket web and other machinery
products. Further, “Click” here in simple terms represent the chargeable unit for
each printing function performed by the final customer. The functionality of the
indigo press machine is such that all these supplies are necessarily required to be
consumed together at a single time in order to produce the print. The desired
quality and final output as per customer needs can be achieved only when all
these supplies are collectively present in the indigo machine and used in the
course of printing activity.
Under the A la carte model, Electroink and consumables are supplied in-
dividually to the re-seller at a price and which are further supplied by the re-
seller to the final customer.
6. We wish to bring to your Lordship’s attention that an end customer
could use the “click” and “A la carte” model together and in conjunction with
other. In these cases, the end customer would contract with the re-seller for sup-
ply of Electroink and consumables in a bundle and additional inks in an a-la-
carte model. A standard HP Indigo Digital Printing press comes with 4 ink sta-
tions installed by default with an option provided to the customer to add 3 more
ink stations. The bundle inter alia comprises 4 types of ink, i.e. Cyan, Magenta,
Yellow and Black which are 4 standard process inks which may be mixed in dif-
ferent proportions to achieve most colours required for prints. Additionally, 3
inks i.e. orange, violet, and green, again supplied as part of the click can be
placed and used in conjunction to obtain prints with different effects as required.
In some scenarios the customers may wish to use these additional inks on an a la
carte basis from the reseller. The reseller has similar contractual arrangements
with the Appellant.
7. As apparent from above, both models are necessary to serve differ-
ent customer needs. While the click model is necessarily taken by the customer to
effect print in his regular course of business, supplies under A la carte depends on
specific print requirements, for which separate request is made by customer.
8. Additionally, the inks supplied by the Appellant under A la carte
model are “specialized inks” to give enhanced printing experience. These inks
differ from those supplied ordinarily under the click model. Further, in order to
effect print using inks procured under A la carte, the customer necessarily shall
be required to also use other consumables supplied under click model, including
ink. Therefore the A la carte is not an alternate for click, rather an optional
scheme.
9. The Appellant wishes to reiterate that the appeal filed before your
Hon’ble Lordships for classification of Electroink supplied along with consuma-
bles under GST is only in relation to the Click model and not with respect to
supplies made to customers on A la carte model.
10. The Consumables supplied under the Click model are naturally
bundled and not compulsorily bundled, therefore qualify as a composite supply.
With respect to the above ground, we have provided our detailed sub-
mission in para 14 of our Grounds of Appeal. Further to these submissions, we
additionally wish to submit as under :

GST LAW TIMES  23rd July 2020  142