Page 157 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : MACRO MEDIA DIGITAL IMAGING PVT. LTD. 243
(28) The Applicant refers to M/s. K.L. Hi-Tech Secure Print Ltd., 2018 (10)
TMI 445 = 2018 (18) G.S.T.L. 112 (A.A.R. - GST) - Authority for Ad-
vance Rulings, Hyderabad Telangana by the Hon’ble Authority for
Advance Rulings, Telangana which ruled that Printing on PVC
cards was also considered as a supply of ‘goods’.
(29) The Applicant further submits that once any supply has been classi-
fied as supply of goods, there rests no purpose to test the said sup-
ply again on the basis of the definition of ‘services’ under Section
2(102) of the CGST Act. It is for the simple reason that the definition
of services is worded in a manner to provide that anything which is
excluded from being goods, shall qualify to be services. Obvious
corollary of the same is that once the trade advertisements are clas-
sified as ‘goods’, they can in no manner be classified as ‘service’.
5.2 Trade advertisements manufactured and supplied by the applicant are
classifiable under Chapter 49 of the CGST Act.
1
(1) The Applicant prints advertisements on PVC material (blank) by us-
ing a computer controlled digital image printer. This activity can be
categorized as under,
Chapter Note 2 to Chapter 49 of the Customs Tariff Act, reads as
For the purposes of Chapter 49, ‘printed’ also means reproduced by means
of a duplicating machine, produced under the control of a computer, em-
bossed, photographed, photo-copied, thermocopied or typewritten.
It is noteworthy that the expression “produced under the control of a
computer” is also covered under the term ‘printed’. As stated above,
the activity undertaken by the applicant on the PVC material
(blank) is ‘printing’.
(2) In view of the above, if a product is printed PVC sheet or printed
PVC flex is plastic material falling under Chapter 39, the relevant
Heading of Chapter 39 is Heading 3920 or Heading 3921. A perusal
of the goods falling under these headings would show that the
printed plastic sheets would also fall under these headings.
(3) However, Section Note 2 to Section VII which covers goods of
Chapter 39, specifically provides that if the plastic material is print-
ed with motif, character or pictorial representation which are not
merely incidental to the primary use of the goods, then the printed
plastic material will fall under Chapter 49. Thus, where the plastic
article is printed with the text or material and such printing is not
merely incidental to the primary use of such goods, such plastic ma-
terial would be ousted from Chapter 39 and they would travel to
Chapter 49 as product of printing industry. Therefore, the Applicant
now refers to the goods falling under Chapter 49 to understand the
classification of plastic goods with such printed material which are
not merely incidental to the primary use under various headings of
Chapter 49.
(4) On perusal of the rate schedules in the aforesaid notifications and
also the various chapters in the First Schedule to the CTA, 1975, the
Applicant understands that aforesaid printed advertisement mate-
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1 Reference seems to Customs Tariff Act : Editor.
GST LAW TIMES  13th August 2020  157