Page 155 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : MACRO MEDIA DIGITAL IMAGING PVT. LTD. 241
(b) No matter how much of the package the actually re-
ceived.
(c) The elements are normally advertised as a package.
(d) The different elements are not available separately.
41. From the application of the above indicators we hold that the
contract for providing the design, procurement, supply, develop-
ment, testing and commissioning of the Plant which includes the
supply of both goods and services is a composite supply as per the
definition in the Act. There are two taxable supplies - one of goods
and the other of services and they both are naturally bundled and it
is natural and also a practice to expect that the contractor who will
supply the goods will also supply the services along with it. In the
business of contracts for the Solar Power Generating System, it is a
practice to provide a Plant as a whole along with the supply of ser-
vices.”
(18) In view of the foregoing, the Applicant states that PVC material
(blank) and printing of image/written text on such PVC material
are so interlinked to one another in ordinary course of business that
one cannot stand without another and together they combine to
form a trade advertisement, which is desired by the customer and is
essentially the sole economic supply in present case. Hence, it is ev-
ident that PVC material and service of printing on PVC material, are
naturally bundled and are supplied by the Notice in the ordinary
course of business.
(19) One of said supplies in the whole supply, should be the principal supply -
To understand the true extent of the said essential, it is paramount
that reference be drawn to the term ‘principal supply’, defined un-
der Section 2(90) of the CGST Act which reads as under :-
“(90) “principal supply” means the supply of goods or services which
constitutes the predominant element of a composite supply and to which
any other supply forming part of that composite supply is ancillary”.
(20) There is no straight-jacket formula to determine which is the domi-
nant supply and which is ancillary supply. The only test to deter-
mine dominant component of supply is to have regard to the terms
and conditions of contract.
(21) The Applicant states that the scope of purchase orders placed by the
customers has always been for supply of the trade advertisements,
including both PVC material and printing; as none of these ele-
ments can stand alone to serve the purpose of the trade advertise-
ment and together they constitute as one unified economic supply
of trade advertisements. Further, the Applicant also states that the
products supplied by it to the customers in the market are not
known as printed flex boards, but as trade advertisements (Bill-
board Printing, Building Wraps, Fleet Graphics, Window Graphics,
Trade Show Graphics, Office Branding, In-store Branding, Banners,
Free Standing Display Units, Signage Graphics). Given this, the Ap-
plicant states that the sole intention of customer which can be in-
ferred from the terms and conditions of the contracts is to procure
the goods in form of trade advertisements from the Applicant and
not to receive printing services per se.
GST LAW TIMES  13th August 2020  155