Page 143 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : H.P. SALES INDIA PVT. LTD. 509
Findings in the impugned order
The Learned AAR has in its Order confirmed that the Electroink and
consumables are bundled. However, the Learned AAR has concluded
that the bundle is not naturally bundled. The relevant portion of the im-
pugned Order is reproduced below :
‘The word ‘Naturally’, is not defined under the Act, we therefore re-
fer to dictionary to understand the meaning. The dictionary mean-
ing is as below,
As per Merriam Webster
1 : by nature: by natural character or ability
• naturally timid
2 : according to the usual course of things: as might be expected
3a : without artificial aid
4 : with truth to nature: realistically
Without special intervention; in a natural manner.
As per English Oxford dictionary
In a normal manner; without exaggeration or effort.
‘act naturally’
a naturally bright pupil’
The dictionary meaning of the word ‘Naturally’ with reference to
supply implies that it should be in the natural manner or is happen-
ing or existing as a part of nature and not made or done by the peo-
ple. In the present case and as per the terms of the HP’s agreement
with reseller/customer which provides that :
“Reseller may elect to purchase Supplies for the different Indigo
Press Product Lines under different programs, provided that
Reseller shall purchase all of Supplies required by it for each In-
digo Press Product Line under the same Supplies purchase pro-
gram.” This clause of the purchase agreement assume signifi-
cance of the factual background that there exists a notable dif-
ference between the conventional offset and HP Indigo Digital
offset Printing Technology. The terms of the contract as men-
tioned above clearly indicate that the recipient of the supply has
no option but to accept it as a bundled supply. Thus, the trans-
action of supply of Electroink with consumables cannot be con-
sidered as bundled supply but a compulsory supply. Thus, the
transaction before us cannot be said to be naturally bundled
supply”
The Impugned Order while determining the characteristics of a “Composite
Supply” has at page 13 observed :
“The terms of the contract as mentioned above clearly indicate
that the recipient of the supply has no option to select individual sup-
ply but to accept it as bundled supply”.
[Emphasis supplied]
However, subsequently, on page 14 the Impugned Order has concluded that
“Each of such supplies can be supplied separately as they are not dependent on
each other …..”
[Emphasis supplied]
GST LAW TIMES  23rd July 2020  143