2008 (7) TMI 201 - AT - Service Tax

Appeal Granted: Input Deductions for Photographic Services Upheld

Sudha Digital Images Versus Commissioner of Central Excise, Hyderabad-II (Commissionerate Hyderabad)

The Tribunal allowed the appeal in both cases, setting aside orders that denied deductions for inputs used in photographic services. The decisions were ... Inputs used in the photographic services - Revisionary Authority held that assessee is not entitled for the benefit of Exemption Notification No. 12/2003-ST, dated 20-6-2003 in respect of the inputs used – issue has already been decided in assessee’s favour in various decisions – said ratio would apply to this case also - hence, impugned order is set aside and appeal allowed with consequential relief Issues:1. Interpretation of Notification No. 12/2003-ST regarding deduction for materials sold vs. materials consumed in Photographic Services.2. Eligibility of the assessee for exemption notification in respect of inputs used in photographic services.3. Consistency in decisions across similar appeals.Analysis:1. The appeal in question arises from Order-in-Revision No. 03/2007-ST, where the Commissioner (Appeals) revised Order-in-Original No. 75/2004, accepting the taxable value and service tax paid by the assessee based on Notification No. 12/2003-ST. The Revisionary Authority set aside the exemption granted for inputs used in photographic services, leading to the appeal. The learned advocate cited various tribunal decisions supporting the assessee's position, emphasizing the distinction between materials sold and consumed. The Tribunal, respecting the precedent set by previous judgments, set aside the impugned order and allowed the appeal.2. In Appeal No. 371/2007, the issue pertained to the eligibility of the assessee to claim deductions on the value of inputs used in photographic services. Both the Commissioner (Appeals) and the Order-in-Original held that the assessee was not entitled to such deductions. Citing the same ratio as in the previous appeal, the Tribunal set aside the order-in-appeal and allowed the appeal, granting consequential relief if applicable. The consistent application of the legal principle across similar cases ensured fairness and adherence to established jurisprudence.3. The Tribunal's decision in both appeals was guided by the principle established in previous judgments, ensuring uniformity and predictability in the application of tax laws. By upholding the decisions favoring the assessee based on the interpretation of relevant notifications and legal precedents, the Tribunal maintained consistency and provided clarity on the issue of deduction for inputs used in photographic services. The reliance on established jurisprudence underscored the importance of precedent in resolving similar disputes and promoting legal certainty in tax matters.