Page 149 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : H.P. SALES INDIA PVT. LTD. 515
Our submissions
40. Electroink and consumables supplied under the Click model are
supplied to almost all customers in India except a Government Company that
specifically requires the supplies exclusively under the A la carte model. Accord-
ingly, the model of supplying in a bundle is not a one-off transaction, but is in
the usual course of business of the Appellant.
The Click model is also internationally accepted as a means of making
supplies to customers.
41. Further, the Click model is a standard method of delivery and con-
sumption in the “Offset printing industry”. This is further substantiated from the
fact that multiple suppliers supplying similar printing presses to other customers
use the click model. This is substantiated by trade literature and competitors’
brochure enclosed with the appeal.
Accordingly, the supplies are made in ordinary course of business.
42. Electroink is the principal supply of the Bundle
With respect to the above ground, we have provided our detailed sub-
mission in para III of our Grounds of Appeal. Further to these submissions, we
additionally wish to submit as under :
Findings in the impugned Order
Page 14 para 5.4
“Thus, the consumption of supplies has its own pattern. Each of
such supplies can be supplied separately as they are not dependent
on each other and the identification of the principal supply there-
fore cannot be drawn from and among the supplies which gives one
of the essential character of bundle supplies to the suppliers in the
present case”
Our submissions
43. Further, we wish to submit that for usability, the printing ink or the
“Electroink” is the most critical element from the customer’s perspective to
achieve the print, as printing essentially requires the placement of ink on paper,
and the balance consumables aid in achieving this function.
44. The table provides the pattern of consumption of supplies made
under the Click program for effecting a single print from the indigo press ma-
chine.

S. No. Nature of the Product Consumption (In percentage)
1 Printing Ink (EletroINK) 41
2 Blanket 16
3 PIP- Photo Imaging Plate 13
4 OMP- Other Machine Products 10
5 BIO-Binary Ink Developer 10
6 OIL 7
7 Blanket Web 2
8 Other Consumables 1

45. The above pattern of the consumption of the consumable establish-
es the fact that the ElectroInk is the principal supply among all the supplies
GST LAW TIMES  23rd July 2020  149