Photographic service taxation excludes consumed goods value, and abatement under the exemption notification was available.

Where goods and materials are consumed in rendering photographic service, their value is not includible in the assessable value for service tax, and the assessee is entitled to exclude that component from taxation. On that settled position, abatement under Notification No. 12/03-ST dated 20-6-2003 was available, and denial of the abatement was unsustainable.

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Issues: Whether the value of goods and materials consumed in rendering photographic service was liable to be included in the assessable value for service tax, and whether the assessee was entitled to abatement under Notification No. 12/03-ST dated 20-6-2003.

Analysis: The issue stood covered by the settled position that where goods and materials are consumed in providing photographic service, their value cannot be included in the value of taxable services for levy of service tax. On that basis, the benefit of abatement under the notification was available to the assessee.

Conclusion: The denial of abatement was unsustainable and the assessee was entitled to exclusion of the value of goods and materials consumed in rendering photographic service.

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