2025 (7) TMI 558

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....a service of photography taxable under Section 65(78) of the Finance Act, 1994. During the course of audit, it was noticed that the appellant had wrongly availed the benefit of the exemption Notification No. 12/2003-ST dated 20.06.2003 for a which show-cause notice dated 21.01.2009 was issued. The original authority based on the decision in the case of Commissioner of Central Excise and Customs, Kerala Vs. M/s. Shilpa Colour Labs and Others which was upheld by the Supreme Court dropped the proceedings. Against this order, the Department filed an appeal before the Commissioner (Appeals), who justified the demand and held that the appellant was not eligible for the benefit of the above Notification based on various decisions of the Tribunal a....

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....o more res integra in as much as the reliance placed on by the Revenue on the Larger Bench in the case of Agarwal Colour Advance Photo System Vs. CCE, Bhopal (Supra) is no more good law as it stands set aside by the Hon'ble High Court of Madhya Pradesh wherein it was held that: "13. From the aforesaid discussion, it would emerge that the crux of the substantial question of law No.1 which has arisen for consideration is: "whether for the purposes of service tax the value of photography service can be determined separately from the value of certain consumables and chemicals which are used on the paper for printing the image and whether such printed photograph can be said to be a sale of goods in terms of Article 366(29A)(b) of the Constitut....

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....ith their grammatical variations and cognate expressions, mean any transfer of the possession of goods by one person to another in the ordinary course of trade or business for cash or deferred payment or other valuable consideration;" 14-18. ...... 19. In view of the law laid down by the Apex Court in M/s Pro. Lab's case (supra), it can be safely held that photography service, which has both the elements of goods and services is covered under works contract. Thus, in a works contract which involves transfer of property, the provisions as contained in Article 366(29A) of the Constitution are attracted. Therefore, in the light of sub-clause (b) of Clause (29A) of Article 366 of the Constitution, in execution of a works contract when t....