TaxTMI 
TaxTMI 
2015 (4) TMI 526
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....ee is doing business of Photography and printing/developing photographs out of negative on paper and during the course of business, has been using chemical as well as photographic paper. Not only the assessee is doing its own printing but also is taking work on contract basis. 3. During the course of assessment proceedings, the Assessing Officer (for short, 'AO') noticed that the assessee purchased photographic papers from various persons within the State and also purchased chemical from M/s. Jindal Photo Film Ltd. New Delhi and that entire photographic papers as well as the chemical was after paying due sales/purchase tax. It was the contention of the assessee that the entire chemical so also the photographic paper was used in the....
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....Board by the Revenue, who also, after analyzing the material on record, dismissed the appeal of the Revenue. 5. This instant revision petition was admitted on the following question of law:- "(i) That whether in the facts and circumstances of the case, the judgment of learned Rajasthan Tax Board is legal? (ii) That whether in the facts and circumstances of the case, the scraps/waste materials of the negative and photopapers can be said to be negative or photopapers. (iii) That whether in the facts and circumstances of the case, the chemical which is being used for developing photos by processing the chemical is not transferred through which the resultant photos came into existence and it is not a sale?" 6. Ld. Counsel for the Revenue co....
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....so far as chemical is concerned, at the close of the year, either the chemical was used in the process of printing/developing of the photographs or the chemical after certain time which was not usable either had to be thrown away or used and thus nothing remained with the assessee. He further contended that using of chemical in the photographic paper to print/develop the photograph cannot be said to be sale under the RST Act. In so far as the sale of left over (cuttings) photography papers are concerned, he contended that the entire goods were purchased after paying sales tax and therefore once sales tax has been paid, then even if some left over paper or cuttings have been sold, no occasion arose for holding or subjecting or treating it is....
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....als and what was sale, was a photograph duly developed and not chemical. It is an admitted fact that the photographs are developed primarily on account of the chemicals being used and either it was used in entirety or if some chemical remained after certain time, it had to be destroyed or could not have been re-used after certain processes. One cannot hold that chemical has been sold to the consumers. Similarly the paper cuttings which remained after proper sizing as such no new item came to existence, a paper would remain a paper whether after cutting of the corners or otherwise and thus no new item can be said to be produced merely because photographs are prepared in different shapes and sizes according to the direction of the consumer. ....
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.... works contract or the toys used in the execution of dying works contract of consumables items such as water, electricity, fuel etc. used in the execution of the works contract, the property in which is not transferred in the course of the execution of a works contract and accordingly held that it is not liable to tax. 15. The Hon'ble Bombay High Court in the case of Punjab Business & Supply Co. Pvt. Ltd. (supra) had an occasion to consider issue relating to cloth which was sold in pieces and not in the form of takas or bales manufactured by the mills and held that both rags and chindhis are pieces of cloth though irregular shapes and sizes but it cannot be said that they are not manufactured cloth. Rags and chindhis also do not cease ....
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....mers, which is being developed from negatives or when they develop the exposed negatives brought by the customers and supply them positive prints, or when they take positive prints from the negatives brought by the customers, is a contract for service by the photographer. The activities carried on by the petitioner can be generally categorized that (i) they take photograph of their customers, develop the negative and supply positive prints in the desired size to the customers, (ii) they develop the exposed film brought by the customers, take positive prints from them and supply the negative and the positive prints in the desired size to the customers, (iii) they take positive prints from the negative brought by the customers and supply the ....