TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 1683
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.... noticee, under Section 77 of the Finance Act, 1994. 6.2 The amount of service tax, interest thereon and penalty should be paid forthwith. Noticee, however, has an option to pay penalty equivalent to 25% of the penalty under Section 78 of the Finance Act, 1994, if the amount of Service Tax, interest and reduced penalty are all paid within 30 days of receipt of this order and the issue should be considered as settled in this event as per provisions of Section 78(ii) of Finance Act, 1994." 1.2 The early hearing application filed by the Appellant has been allowed by the CESTAT vide Miscellaneous Order No M/85945/2019 dated 24.10.2019. Accordingly this matter has been listed for final hearing before us. 2.1 Appellant is registered with the department as provider of the services under the category of "Photography Services". 2.2 Acting on intelligence that the appellant was not discharging appropriate liability of Service Tax, investigations were undertaken by the officers of Director General Central Excise Intelligence. During the course of investigations Statement of Shri Darshan Doshi (Director) was recorded. 2.3 Investigations undertaken revealed that apart from undertaking the....
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.... they had not suppressed anything from the department, so the demand is barred by limitation as extended period as per Section 73 is not invokable in such cases. 3.3 Arguing for the revenue learned Authorized Representative supported the impugned order and reiterated the findings recorded by Commissioner 4.1 We have considered the impugned order along with the submissions made in appeal and during the course of arguments 4.2 The impugned order is entirely based on the decision of the tribunal in case of Global Digital Colour Lab [2016 (42) STR 746 (T-Del)]. We reproduce below the relevant paragraphs from the impugned order: "5.2 The noticee was carrying out several activities and in respect of a couple of them they were paying service tax. There is no dispute between the demand notice and the noticee to this extent. It is also admitted position that they were not paying service tax on the activity of "digital offset printing". The demand notice alleges that this activity is covered under "Photography Services" as defined under Section 65(78) of the Finance Act, 1994 and taxable as per the provisions of Section 65 (105) (zb) of the Finance Act, 1994. The contention of the notic....
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....b), as they are photography studio or agency and provided service in relation to photography in some manner. In the light of this analysis it is not even necessary to quibble much over the scope of the word photography because the appellants clearly were engaged in taking or processing of photographs and were clearly covered under the scope of definition of photography studio or agency and they clearly provided service in relation to photography. Indeed the position is so unambiguous that there was no scope for any possibility of a reasonable person operating in an appropriate environment to entertain any confusion, leave alone belief, that the impugned service was not covered under photography service. It is pertinent to mention that bona fide belief is the belief of a reasonable person operating in an appropriate environment and is not some sort of hallucinatory belief. Thus the contention of the appellants that they were under a reasonable belief that the impugned service was not taxable is untenable. Consequently, the extended period is clearly invocable along with all its consequences." 5.5 The only apparent difference in the case of Global Digital Colour Lab, supra and the ....
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.... photography or fluorescent photography. Section 65 (79): "photography studio or agency" means any professional photographer or [any person] engaged in the business of rendering service relating to photography." 14. Section 65 (105) (zb) defines the service provided to a any person 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 photograp....
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....of no commercial user without further process' would be applied as explained in paragraph 20 of Servo-Med Industries (supra). The aforesaid paragraph is extracted hereunder. "20. In Brakes India Ltd. v. Superintendent of Central Excise -(1997) 10 SCC 717, the commodity in question 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 "man....