TMI Blog2020 (1) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... whether charges collected towards service rendered by an advertising agency for evolving of a prototype conceptual design upon which service tax had been collected would also be liable for tax under the Karnataka Value Added Tax Act, 2003 - After considering the nature of services rendered, the Bench concluded that payment of service tax and value added tax are mutually exclusive. Therefore, they should be held to be applicable exclusively having regard to the relevant parameters of the respective levies and bearing in mind the differences envisaged in a composite contact as contradistinguished from an indivisible contract. The former may consist of different elements each providing for, and attracting different levies. The resounding p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of photographic services and the petitioner is assessed to service tax as works contract under the provisions of the Finance Act, 1994. 4. While this is so, the petitioner received notices under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (in short, the Act ) for the periods in question calling upon it to show cause why the turnover not be subjected to VAT. The petitioner raised objections to the proposals despite which orders of assessment, adverse to it, were passed on December 8, 2011. 5. The petitioner challenged the same by way of writ petitions in W. P. (MD) Nos. 1361 to 1363 of 2012. A learned single judge of this court, vide order dated August 21, 2012, allowed the writ petitions on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over received from the services rendered by the petitioner in regard to digital photography. Courts have consistently settled the position that the activity carried in this regard would only amount to a contract of skill and labour and not a contract of sale . 10. The first judgment on this issue is that of the Full Bench of the Supreme Court in the case of B. C. Kame [1977] 39 STC 237 (SC) wherein the Bench, after extracting a paragraph from sale of goods by P. S. Atiyah noticing that the distinction between a contract of sale and contract of skill and labour agitated the courts frequently states thus : 11. In the case of Robinson v. Graves [1935] K. B. 579, it was held that a contract to paint a portrai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otograph in most cases is indeed a thing of beauty. It not only seeks to mirror and port ray a sene from actual life, but it also catches and preserves for the future what belongs to and is a part of the fleeting moment. The ravage brought about by the passage of time, the decay and the ageing process which inevitably set in as the years roll by leave what is pre-served in the photograph unaffected. It is no wonder that an old photograph revives nostalgic memories of days no more, but to which we look back through the mist of time with fondness even though such fondness has a tinge of sadness. 12. In a subsequent judgment, the Supreme Court in the case of Rainbow Colour Lab [2000] 118 STC 9 (SC) reiterated the position that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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