TaxTMI 
TaxTMI 
2024 (3) TMI 853
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....t they are liable to pay service tax on the amounts received from their customers for the services provided by them. Based on such intelligence show cause notice dt. 16.10.2015 was issued to the appellant for the period 01.04.2010 to 30.06.2012 and 01.07.2012 to 31.07.2015 proposing to demand service tax along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand for the period 01.04.2010 to 30.06.2012 and dropped the demand for the period from 01.07.2012 to 30.07.2013. Against such confirmation of demand, interest and penalties, the assessee has filed Appeal ST/40556/2021. Aggrieved by the order of the Commissioner dropping the demand for the period 01.07.2012 to 30.07.2013, the Department has filed Appeal ST/42002/2017. 3. The Ld. Consultant Sri M. Saravanan appeared and argued for the assessee. The activity undertaken by assessee is explained by the Ld. Consultant as under : 3.1 The customers give images in digital form to the assessee. In the HP Digital Printing Press using several raw materials like LMO, paper board, BOPP Lamination Roll, Ink and cartridges, matt film rolls fusion boards, red tapes, pins, bags, ca....
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....question whether printing on packaging paper meant for M/s Parle Products would amount to "manufacture" or not in terms of section 2(f) (iii) of the Central Excise Act, 1944. The Apex Court held that it amounts to 'manufacture'. 3.5 The Tribunal in the case of J. J. Enterprises vs. CCE reported at 2013 (295) ELT 324 held that the process of printing on sheets amounts to manufacture and the end product would be classifiable under Chapter 49 of the Central Excise Tariff Act, 1985 i.e. product of printing industry which attracts nil rate of duty. 3.6 It is submitted that Printed books, Brochures, Leaflets merit classification under chapter heading 4901. Other printed matter, including printed pictures and photographs merit classification under chapter hearing 4911. All these goods have Nil Tariff as prescribed. Hence, there is no question of payment of central excise duty. As the activity of the assessee amounts to manufacture, no service tax can be demanded on an activity that amounts to manufacture. 3.7 In the case of Venus Albums Private Limited Vs.Commissioner CEX, Chandigrah - 2019 (22) GSTL 386(Tri.) the Tribunal considered the question of manufacture on very same activ....
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....ot invokable. 3.12 The appeal filed by the department is on the assumption that the assessee is liable to pay service tax under 'Photography' service without any basis. Even for the period after 1.7.2012 the activity does not fall within the four corners of the definition of "service" defined in Section 65B (44) of the Finance Act, 1994. 4. Ld. Consultant prayed that the appeal filed by assessee may be allowed and the appeal filed by the Department may be dismissed, 5. Ld. A.R Shri Anoop Singh appeared for the Department. It is submitted by the Ld. A.R that after 1.7.2012, the activity of the assessee would fall under 'service' as defined under Section 65B (44) of the Finance Act, 1944. The activity of the assessee does not amount to 'manufacture' and is akin to 'Photograph Service'. Ld. A.R prayed that assessee appeal may be dismissed and the Department appeal may be allowed. 6. Heard both sides. The issue to be considered is whether the activity of the assessee amounts to 'manufacture' or whether it falls under 'photography service' prior to 1.7.2012 and whether would fall under the definition of 'service' for the period w.e.f 01.07.2012 to 30.07.2015. The activity of....
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....gaged them for providing photography services in relating to occasions / functions like wedding ceremonies, birthday ceremonies etc. * GLO is engaged in the manufacture of photo albums/ photo books etc., of different sizes; photo albums/photo books containing photographs of 125 GSM (Grams per Square Metre) are made of LMO films; LMO which stands for laser Matte Opaque Film 125 DS (Double side) (LMO 5505) is a polyester film specially coated on both sides and used in electro photography, screen and offset printing; it is suitable for high quality photo books visiting cards, indoor wallpapers, invitation cards and posters; photo albums/photo books containing photos upto 300 GSM thickness are made of paperboards. * Orders are received by GLO for printing of photo books or photo albums as soft copy via E-mail or on CDs, DVDs, pen drives from their clients mentioned above; on receipt of printing order, the job work order is prepared by the staff of GLO who copies the file into their system after which verification of the size and colours of the photographs as required by customers are undertaken; the file is then converted into PDF format and it is transferred to print....
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....as proposed to demand service tax along with interest and to impose penalties under Section 77 and 78 of the Act. The demand of service tax has been confirmed on the premise that the activity of printing of personal photographs which is undertaken for a particular person falls under the scope of photography service till 30-6-2012. Thereafter as a service falls under Section 65B(44) of the Act and the photo books are not the product of printing industry but a specialized and customized service provided to customer and the activity undertaken by the appellant for making photo book does not amount to manufacture and photo book do not classify under Chapter 4911 of the CETA. It was also held that the impugned service do not fall under the scope of works contract service, therefore, no exemption available to intermediate printing process. It was also held that the benefit of Notification No. 12/2003-S.T., dated 20-6-2003 is not available. Against the said orders, the appellant is before us. ... ... .... 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 t....