In Re: M/s. Evergreen Publication (India) Ltd.
GST
2018 (10) TMI 746 – AUTHORITY FOR ADVANCE RULING, PUNJAB – 2018 (18) G. S. T. L. 273 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, PUNJAB – AAR
Dated:- 13-8-2018
AAR/GST/PB/004
GST
NAVDEEP BHINDER AND G.S. BAINS, MEMBER
Present for the Applicant: Sh. Naresh Chawla, Advocate
(Note: An Appeal against this order lies with the Appellate Authority in terms of Section 99 and Section 100 of the CGST Act, 2017 and Section 99 and Section 100 of the PGST Act, 2017 within a period of thirty days from the date of communication of this order.)
M/s. Evergreen Publication (India) Ltd, ND-200, Tanda Road, Jalandhar-144008, District Jalandhar (Punjab) hereinafter referred to as 'applicant' had submitted an application for advance ruling in form GST ARA-01 vide his letter dated 03.03.2018 received on 06.03.2018 seeking to know whether the Lab manuals generally for class 6th to 12th printed by printing/publishing industry as pr
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manufacturing the Lab Manuals called “Books” printed/published in accordance with the specified syllabus issued by CBSE for class VI to class XII which is written by the authors as per prescription by Educational Boards. It comprises of the entire syllabus of the practical subject described and consists of the comprehensive study material covering syllabus, questions/answers part & some leafs for the use of the students. The printed material is in book form which is covered under chapter 4901 attracting nil duty at entry no. 119 of Schedule of Exempted goods in accordance with ntfn no. 12/2017.
2. Whereas 'exercise books'/'writing books' simply contain sheets of lined paper, commonly known as 'note books' for practising and are used by students for taking down notes or for practising written contents and/or solving problems. Thus 'exercise books' generally do not contain any instructions and are merely compilation of plain papers with lines printed on them. The printing of lines on t
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d in such form that it covers the text & the some vacant spaces for exercise. It is pertinent to mention here that the printed material in the form of text, question/answer is of the primary use whereas the vacant space of exercise is only incidental to the primary use of the book. The main object of the printed material is to provide the text of book as per syllabus to the student including the question/answer and this object is primary whereas the vacant sheet attached is only incidental for the formation of the books, Lab Manual is prescribed by CBSE for the student of class VI to class XII.
4. Vide Circular no. 1052/01/2017-CX issued on 23.02.2017 for the classification of articles for printing industry it has been categorically held that:
“The note book containing some text, question/answer & spaces for exercise has been classified under the heading 4901”
As per rule 4 of general rule for interpretation of the schedule, goods must be classified under the heading appropriate to
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ry use i.e. writing. The fact that printing is incidental to their primary use is the guiding principle for classification of Exercise Books under heading 4820 of erstwhile CETA, 1985.
3. Printed work books on the Other hand are books where printing is not merely incidental to the primary use. HSN Explanatory notes (A) to the heading 49.01 reads as, “Books and booklets consisting essentially of textual matter of any kind, and printed in any language or characters…include…textbooks (including educational workbooks sometimes called writing books), with or without narrative texts, which contains questions or exercises (usually with spaces for completion in manuscript). …” Thus, printed work books containing questions followed by spaces for writing or other exercises would fall within the scope of Chapter 49. Further, since printing in case of printed workbooks is not merely incidental to the primary use of the goods, such goods are classifiable under Chapter 49, in terms of chapter
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the small amounts of water colour required for colouring are contained in the books (e.g., in the form of a palette).
The issue of classification of text books and printed work text books was subject matter of CWP No. 7198 of 2016 = 2016 (9) TMI 323 – DELHI HIGH COURT before the Hon'ble High Court of Delhi. It was claimed by the petitioner that the said goods are appropriately classifiable in Chapter 49 of the Central Excise Tariff Act, whereas the department was considering classification as exercise books in Chapter 48 (4820) of Central Excise Tariff Act. The Hon'ble High Court of Delhi vide order dated 31.08.2016 = 2016 (9) TMI 323 – DELHI HIGH COURT had directed CBEC to examine the matter and pass appropriate order. Accordingly, CBEC has clarified the issue vide Circular No. 1057/6/2017 – CX dated 07.07.2017.
The goods covered under the relevant headings have been distinguished by Circular No. 1057/6/2017 – CX dated 07.07.2017. The guiding principle for classification has also be
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ooks' of heading 4820 contain printed texts with space for copying manually.
Discussion and Findings :
1. We have carefully gone through the facts of the case and the relevant legal and administrative instructions applicable in the present case. After going through the material supplied by the applicant , it is seen that the question which has been raised by the applicant can be framed as – whether 'Lab manual' written by authors as prescribed by Educational Boards and which also contains, apart from chapter wise printed material and printed question and answers, some blank sheets / papers for exercise by students, would be classified under GST Tariff heading 4901 as 'Printed Books' which carries Nil rate of tax or would it be classified under the GST tariff heading 4820 which attracts tax @ of 12% (CGST + SGST) under the description ' Laboratory Notebooks'.
2. The impugned 'Lab Manual', a sample of which was submitted by the applicant during personal hearing , is observed to be a
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ent case, perusal of sample lab manual supplied by the applicant, who has been described above, clearly shows that printing is not merely incidental to the primary use, but actually forms a major part of the book and fulfills the primary objective of imparting knowledge to the student. Rather writing becomes the incidental part in the case on hand as the blank pages providing space to the students to write form a lesser part of the Lab manual and enables the students to write in the context of what they have learnt in the major printed instructional material of the book. Hence it becomes clear after balancing the facts of the present case with the instructions related to classification given in the said Circular dated 07.07.2017, that the Lab Manuals being published by the applicant are rightly classifiable under the GST Tariff heading 4901 as 'printed books' and would consequently carry Nil rate of tax which is presently applicable to the said heading.
4. It is further seen that a si
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