TaxTMI 
TaxTMI 
2018 (11) TMI 754
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....llant was registered under the Central Excise law as manufacturer. The appellant 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 prod....
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....) of the Act. Hence, service tax is payable under the taxable category of 'photography service' only by a professional photographer or any person engaged in the business of rendering service relating to still photography, motion picture photography, laser photography, aerial photography or fluorescent photography. It is his submission that the main occupation of a photographer is essentially one of the skill and labour. In the instant case, the appellant is neither a professional photographer nor involved in any business of photo studio activities or in any manner shooting movies or carrying out any sort of photography such as still photography, motion picture photography, laser photography, aerial photography or fluorescent photography. The appellant is a printer who is carrying out production of photo book by carrying out printing and binding process. The appellant prints photographs on both sides of standard plain printing paper by using digital press and after lamination and wire-stapling of printed photo sheets on the stapling machine, pastes the plain sheets on both sides of the stapled book. Thereafter, cardboard cover having digital printed photographs is pasted with the st....
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....tures or separate sheets, consisting of pictorial matter without a printed text under heading 4911. HSN Explanatory Notes to chapter 4911 provides that this heading covers all printed matter (including photographs and printed pictures) of this chapter but not more particularly covered by any of the preceding headings of this chapter. He submits that photo book being a collection of various printed photographs merit classification under chapter heading 4911 of the CETA. 7. He further submits that under GST regime, Department of Revenue, TRU, has provided clarifications on various issues by issuing period FAQs. It was clarified that photo books printed using digital offset printing press on printing paper other than photo albums and thereafter manually bound, are to be classified under heading 4911. He submits that the activity does not attract service tax. He submits that the amount received from the customers towards sale of photo book. Therefore, no service tax leviable thereon. 8. He further submits that the production of goods in relation to printing was exempt from service tax pre and post 1.7.2012 in terms of Notification No.14/2004-ST dt.10.9.2004 and Sl.No.30 of Notifi....
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....on by a photography studio or agency in relation to photography, in any manner. We also take note of the fact Chapter 49 covers printed pictures, designs and photographs and other product of printing industries. For better appreciation, Chapter 4911 is reproduced as under:- 4911 Other printed matters, including printed pictures and photographs. 4911 91 00 Pictures, designs 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....
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....uestion was brake lining blanks. It was held on facts that such blanks could not be used as brake linings by themselves without the processes of drilling, trimming and chamfering. It was in this situation that the test laid down was that if by adopting a particular process a transformation takes place which makes the product have a character and use of its own which it did not bear 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 Cou....