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TMI Blog2020 (6) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... ts photographs on both sides of standard plain printing paper by using high quality digital press. Thereafter, the printed photo sheets are laminated on both sides and specified number of printed photo sheets are wirestapled on the stapling machine. Finally, plain sheets are pasted on both sides of stapled book and thereafter, cardboard cover having digital printed photographs of the function is pasted with the staple book to finally make a photo book. There is a complete change in the identity and nature of the photographs when printed from soft form to hard bound form as a photo book. The Revenue is of the view that the activity undertaken by the respondents fall under the category of 'Photography service'. Therefore, the show cause notices were issued to the respondents but the Commissioner (Appeals) relying on the decision of this Tribunal in the case of Venus Albums Company Pvt.Ltd. vide final order No.63360-63362/2018 dated 24.10.2018 set aside the demand. Therefore, the Revenue is in appeal before us. 4. The Revenue has filed these appeals on the ground that the activity undertaken by the respondent fall under the category of photography services in terms of section 65 (78) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant was paying Central Excise duty on wedding cards, photo, calendars, etc. The photo books being classified under chapter heading 4911 of Central Excise Tariff Act, 1985 which attracted Central Excise duty at nil rate. The appellant filed ER-1 returns with the department wherein goods falling under chapter heading 4911 were separately mentioned. The appellant was also registered as dealer under Punjab VAT Act, 2005. The appellant was paying VAT on sale of photo book and other printed material viz. calendars, visiting card, etc. The present dispute with regard to the sale of photo books to photographers/photo studios and individual photographers. An investigation was conducted at the business premises of the appellant and a show cause notice was issued to the appellant on 20.10.2015 alleging that the activity of printing of photo book belonging to a particular person falls under the scope of photography service under Section 65 (105) (zb) of the Finance Act, 1994 till 30.6.2012 and thereafter it is taxable as a service under section 66B (44) of the Act. It was also alleged that photo books are not the product of printing industry but a specialized and customized service provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and photographs 15. We take note of the fact that what activity has been undertaken by the appellant. We observe that the process of formation of photo book, the photographers provide predesigned photos in soft form via e-mail or on CD/Pen drive, to the appellant for supplying the photo book. In terms of the arrangement agreed, the appellant cannot format, edit or alter the photographs received by it in the soft form. The Customer specifies the nature of sheets covers, etc. to be used in photo books. The appellant prints photographs on both sides of standard plain printing paper by using high quality digital press. Thereafter, the printed photo sheets are laminated on both sides and specified number of printed photo sheets and then wire-stapled on the stapling machine. Finally, plain sheets are pasted on both sides of the stapled book and thereafter, cardboard cover having digital printed photographs of the function is pasted with the stapled book to finally make a photo book. Thus, there is a complete change in the identity and nature of the photographs when printed from soft form to hard bound form as a photo book. 16. Ld. Counsel has relied upon the various decisions in supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier, then such process would amount to manufacture irrespective of whether there was a single process or several processes." 17. Further, Hon'ble Delhi High Court in the case of Delhi Press Patra Prakashan (supra) has examined the issue and observed as under:- ".........We do not think that we can read in this observation of Calcutta High Court, a decision that printing activity carried on by a publishing house may amount to manufacture does not ipso facto exclude the activity of printing from the scope of the expression "manufacture or produce an article or thing" as occurring in Section 80-I (2) (iii) of the Act. The contention of Mr.Sahni that an assessee who is engaged on job work basis cannot be considered as a manufacturer is also premised on the observations made by the Calcutta High Court in the case of A. Mukherjee & Co. (supra) and as stated earlier, we do not find that the language of Section 80-I of the Act support this contention." "18. Further, in the case of Jamal Photo Industries (P) Limited (supra), Hon'ble Madras High Court has examined the issue and observed as under:- "Whether in the facts and circumstances of the case, the Tribunal was right in h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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