2005 (10) TMI 3 - SUPREME COURT

Bifurcation of gross receipts of processing of photographs into the portion attributable to goods and that attributable to services

Held that:- There is one further difficulty in the way of the Petitioner. This Court has, in the case of Rainbow Colour Lab & Anr. v. State of M. P. & Ors [2000 (2) TMI 2 - SUPREME COURT OF INDIA], held that contracts of the type entered into by persons like the Petitioner are nothing else but service contracts pure and simple. It is held that in such contracts there is no element of sale of goods. This Judgment is binding on this Court. In view of this Judgment, the question of directing the Respondent to bifurcate the receipts into an element of goods and the element of service cannot and does not arise. We see no substance in the contention that facts in Rainbow Colour Labs case were different inasmuch as in that case the Court was dealing with a case where photographers take photographs, develop them and then give the photos to the customer. In our view, the ratio of Rainbow Colour Lab's case also applies to cases like the present.