Page 160 - GSTL_23rd July 2020_Vol 38_Part 4

526 GST LAW TIMES [ Vol. 38
ing plate, binary ink developer, HP imaging oil, blanket web and other machin-
ery products by the Appellant to its customers is ‘mixed supply’ and not the
‘composite supply’, as being claimed by the Appellant. One of the reasons for the
aforesaid ruling, made by the AAAR, was that out of the various supplies, which
comprise of Electroink along with the other consumables like blanket, photo im-
aging plate, binary ink developer, HP imaging oil, blanket web and other ma-
chinery products, there was no such supply which could be construed as princi-
pal supply in terms of its definition provided in Section 2(90) of the CGST Act,
2017, thus violating one of the primary conditions stipulated for the composite
supply under Section 2(30) of the CGST Act, 2017. Further, since the above men-
tioned supply of the Electroink along with the printing consumables by the Ap-
pellant was not held to be composite supply for the reasons recorded above, the
said bundle of supply by the Appellant against the single price charged from the
customers, which has been held by the Advance Ruling Authority as ‘mixed
supply’ in the impugned AAR order dated 8-6-2018, was also upheld by the Ap-
pellate Authority for Advance Ruling.
57. At the outset, we would like to examine this very aspect of the prin-
cipal supply among the bundle of supplies, made by the Appellant to its custom-
ers, in light of the contentions and evidences tendered vide the additional sub-
missions dated 11-2-2019. Also, it has to be kept in mind that the scope of ‘rectifi-
cation’ is only limited to the error apparent on the face of record. Therefore, we
will examine only those submissions which were not considered by us while
passing the appellate order dated 17-2-2019.
58. Firstly, we will refer to the para No. 43 to 46, wherein the Appellant
has submitted that the Electroink is the principal component of the supply and
the remaining printers’ consumables just aid in placement of the ink on the paper
to effect the desired printouts. The Appellant have, further, emphasized that the
Electroink is the most consumed items in terms of volume, which is 41% of all
the items consumed, among all the elements of supply by the Appellant. To as-
sert this submission, they have incorporated one table exhibiting the consump-
tion pattern of the various components of the supplies, wherein it was displayed
that the consumption of the Electroink is 41% of the total consumed items in
terms of the volume. This consumption pattern of printing consumables was also
certified by the Chartered Engineers vide the certificate issued by him, wherein
he testified as under :
“........all the consumables shall be required to be required to be supplied as
bundle to the customer to enable the customer to achieve the print, func-
tionally, the print shall not be available to the customer unless all the goods
are used in the prescribed manner to take the printout.
To conclude, all Indigo press consumables are necessarily required to be
consumed together at the same time for effecting the desired output.
The entire printing process is centric to the use and consumption of H.P.
Indigo’s Electroink, to yield the desired print results. Accordingly, based on
the consumption pattern of the various elements provided for our consid-
eration and our analysis of the printing process, functionally, the Electroink
is the predominant element in the process of obtaining print impression
from H.P. Indigo Printers.”
Thus, on perusal of the above submissions and the certificate issued by the Char-
tered Engineer, it is clearly revealed that all the printing consumables comprising
Electroink, blanket, photo imaging plate, binary ink developer, HP imaging oil,

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