TMI Blog2017 (7) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... etc., would stand excluded in terms of Explanation to section 67 if sold to the client. Also, the value of other goods and material, if sold separately would be excluded under exemption N/N. 12/2003 and the term 'sold' appearing thereunder has to be interpreted using the definition of 'sale' in the Central Excise Act, 1944 and not as per the meaning of deemed sale under Article 366(29A)(b) of the Constitution. Time limitation - Held that: - except for a vague statement that the appellant has willfully evaded payment of service tax by availing the benefit of notification, there is no evidence to establish that the appellant has intentionally evaded payment of service tax - the show-cause notice issued is time-barred and, therefore, not s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... K.R. Karuppaiah Vs. Vs. CCE ST, Tiruchirapalli -do- 1,56,763 03 S/202/06 M/s. Jai Raja Rajeswari Color Lab. Vs. CCE ST, Tiruchirapalli -do- 1,21,830 3. After due process of law, the original authority confirmed the tax demand along with interest and also imposed penalty under section 76 as well as under section 78 of the Finance Act, 1994. Upon appeal by the appellant, the learned Commissioner (Appeals) upheld the same. Hence, these appeals are before us. 4. On behalf of the appellant, learned counsel Ms. L. Maithili submitted that the issue whether the appellant is eligible to deduct the cost of papers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Aggarwal Colour Advance Photo System (supra) as submitted by the learned Authorised Representative. The relevant paragraphs are reproduced as under:- Hence, our answers to the two questions referred to in paragraph 3 above are as follows:- (i) For the purpose of Section 67 of the Finance Act, 1994, the value of service in relation to photography would be the gross amount charged including cost of goods and material used and consumed in the course of rendering such service. The cost of unexposed film etc., would stand excluded in terms of Explanation to Section 67 if sold to the client. (ii) The value of other goods and material, if sold separately would be excluded under exemption Notification No.12/2003 and the te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly evaded payment of service tax by availing the benefit of notification, there is no evidence to establish that the appellant has intentionally evaded payment of service tax. The appellant has filed ST-3 returns regularly for the relevant period, wherein, they have disclosed that they have availed the benefit of Notification No.12/2003. They have also produced documents contenting that such materials have been consumed for providing the taxable service. This issue during the relevant period was contentious and had travelled upto constitution of Larger Bench. From the foregoing, we hold that the show-cause notice issued is time-barred and, therefore, not sustainable. The appellant succeeds on the ground of limitation. The impugned order is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
