Page 145 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : H.P. SALES INDIA PVT. LTD. 511
• The Agreement between the Appellant and the reseller also sub-
stantiates that the supply of Electroink and the consumables is done
only when they are used upon effecting the “print” command of the
end customer.
14. The above substantiate that the consumables are functionally sup-
plied as a natural bundle to the reseller and consequently to the end customer.
15. Interdependency of the consumables
The Impugned Order noted that “Each of the supplies can be supplied
separately as they are not dependent on each other and the identification of the
principal supply therefore cannot be drawn from and among the supplies”.
16. The Appellant humbly submits that the consumables supplied un-
der the Tier Model are fundamental for the printing process to get effectively
completed. Shortage or non-availability of any consumables may either result in
the print not being achieved or may adversely impact the quality of the printout.
17. Further, drawing reference to Clause 3 on Page 5 of the HP - reseller
agreement, “supplies shall remain the property of HP until utilized in the
Press(es)”. Additionally, the parties to contract have agreed that the billing in
this regard shall be made on a “per click” basis. Therefore, it is clearly evident
that both the activity of transfer of property in goods supplied and invoicing for
the same is made collectively for the entire bundle at a single point of time (based
on consumption).
18. One of the condition as provided in the Goods and Services Tax
Flyer (“Flyer”) on Composite supply and Mixed Supply issued by the Central
Board of Indirect Taxes (CBIC) specifies that to constitute a composite supply,
“the different elements shall be required to be integral to one overall supply - if
one or more is removed, the nature of the supply would be affected”. The supply
of indigo press consumables are integral to each other that where anyone is re-
moved, the entire functionality of the print output shall get affected.
19. The Chartered Engineer certificate enclosed with the appeal further
confirms the above.
Intention of the Customer
20. We wish to submit that the end customers also require the Elec-
troink and consumables to be supplied in a bundle. The intention is to not to buy
individual products separately but to have all the Electro Ink and consumables at
one place for use in the printing machines.
21. To corroborate the same we have enclosed a declaration from the
customer.
Presence of other competitors along with similar models
22. The Click model adopted by the Appellant is generally accepted in-
dustry practice and matched the business requirements of the customers in this
trade. The provisions of the contract to raise invoices based on the consumptions
and the clicks performed are not unique and specific to the Appellant.
To corroborate the same, the declarations as by end customers enclosed
with the appeal also confirm the availability of similar models by other competi-
tors.
We have also enclosed write up on the click model based on websites
that specialize in printing solutions to industry.
GST LAW TIMES  23rd July 2020  145