2024 (11) TMI 288

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ls). 2.1 Facts in r/o Appeal No. ST/58178/2013 - Briefly stated the facts of the present case are that the appellant, M/s Rajneesh Photo Sales are engaged in providing services of photography/developing/printing of films and are registered under the category of "Photography Services" since July, 2001; the appellant are also engaged in re-printing of old prints, conversion of black & white prints into colours etc. The appellant have been issued two separate SCNs both dated 06.10.2006 covering the periods July 2001 to 09.09.2004 and July 2001 to 31.03.2005 respectively. First SCN was issued seeking demand of service tax of Rs.3,35,691/- on the allegation that the cost of raw material utilized in providing services was not included. The Assis....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he allegation that the appellant have evaded service tax on the photographic services in respect of activities undertaken by them in printing the photographs and creating photo books/photo albums. The Joint Commissioner vide OIO dated 27.02.2018 confirmed the service tax demand under Section 73(1) of the Finance Act, 1994 alongwith interest under Section 75 ibid and imposed equivalent penalty under Section 78 ibid and also imposed a penalty of Rs.10,000/- under Section 77 ibid. Hence, appeal ST/61058/2019 by the appellant. 3. Shri Sudhir Malhotra, the learned Counsel for the appellant submits that the status of department's appeal no. ST/558/2009 is not available either with the CESTAT Chandigarh Bench or with the Principal Bench at New De....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l and submits that during the relevant period, the Larger Bench of the Tribunal in the case of Aggarwal Colour Advance Photo System vs. CCE, Bhopal - 2011 (23) STR 608 (Tri. L.B.) has held that the value of papers consumed and chemicals used to bring photographs is includable in the value of taxable services. Regarding invoking of extended period, he reiterates the finding of the impugned order. 5.1 As regards the appeal no. ST/61058/2019, the ld. Counsel submits that the issue is no longer res integra having been decided by the Tribunal in the case of Venus Albums Co Pvt Ltd vs. CCE - 2019 (22) GSTL 386 (Tribunal), affirmed by Hon'ble Supreme Court as reported in 2023 (70) GSTL 225 (SC). He furthers submits that it can be very clearly see....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....io Pvt Ltd (supra) has held that such value is not includable, while in the case of Aggarwal Colour Advance Photo System (supra), the Larger Bench of the Tribunal has held otherwise. The fate of the departmental appeal on the same issue before this Bench vide appeal no. ST/558/2009 is not known. However, under the circumstances, we find that when the different benches of the Tribunal can have different opinions necessitating the constitution of a larger bench, it is quite reasonable for the appellant to have bona fide reasons to entertain an opinion that the cost of materials used in photography services is not includable. Therefore, without going into the merit of the issue, we are of the considered opinion that extended period cannot be i....