2009 (1) TMI 761

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.... Excise department for providing photography service. The appellant had deducted the cost of goods used/consumed in the photography service in terms of Notification No. 12/2003-S.T., dated 20-6-2003 for the period April 2004 to June 2006. A Show Cause Notice dated 18-1-2007 was issued for short payment of service tax of Rs. 20,30,980/-. The Joint Commissioner had disallowed the deduction/adjustment claimed in respect of the goods consumed while providing the service and confirmed all demands in his impugned order. Aggrieved by this order the appellant have filed this appeal on the following grounds; (a) During the period the appellant availed exemption from payment of service tax on the cost of materials used/consumed for providing servi....

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....f Notification No. 12/2003-S.T., dated 20-6-03 would not be applicable if the goods are consumed during the provision of service and are not available for sale. 5. I find that our jurisdictional CESTAT, Bangalore vide its final order No. 10 to 18/2007 dated 30-10-06 in the case of Shilpa Colour Lab & others v. C.C. Ex. Cochin as reported in 2007 (5) S.T.R. 423 (T-Bang.) has decided the issue in favour of the appellant. Para 8.3 reads as follows : The following Notification 12/2003-S.T., dated 20-6-2003 is very relevant for the present appeals and hence, the same is reproduced below: Valuation (Service Tax) - Goods and materials sold by service provider to recipient of service - Value thereof, exempted In exercise of the powers c....