Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2010 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (2) TMI 156 - HC - Service TaxPhotography service- The assessee was engaged in rendering service relatable to photography, i.e. developing and printing. In processing of photography, goods/ materials were consumed. The case of the revenue was that the assessee had not sold any material/goods to the recipient of service and had willfully suppressed the taxable value of these materials/goods. The adjudicating authority dropped the proceedings against the assessee. However, the revisional authority raised the demand of service tax along with interest and also imposed penalty. On assessee’s appeal, the Tribunal set aside the order of the commissioner and restore the original order of the adjudicating authority. Held that- the photography films, printing papers, chemicals and envelops are the integral and essential ingredients to complete the process of photography, meaning thereby that the components of sale of photography, developing and printing etc. are clearly distinct from that of photography service. Therefore, the nature of photography service is that of works contract service and it involves the elements of both sale and service and therefore, no service tax was leviable on the sale portion. Thus the order of the Tribunal was to be maintained. Thus the appeal was to be dismissed.
|