TaxTMI 
TaxTMI 
2026 (5) TMI 799
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....the appellant is registered with the service tax department but have not filed their ST-3 returns. On the basis of data received from third party, it was found that the appellant has received an amount against the photography services provided during the period 2016-17, but did not pay service tax liability thereon. Therefore, for ascertaining the actual service tax liability and verification of facts, a letter dated 14.12.2020 was issued to the appellant and various documents were called for from the appellant, namely, profit and loss account, Form 26AS details of service provided/ received, copies of work order for the period April 2016 to June 2017. The appellant did not reply the same but filed copies of profit and loss account and Form....
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....ainable under photography services in the negative list regime. 5. On the other hand learned authorized representative submitted that the issue has been dealt by the Tribunal in the case of Matchwell vs. Commissioner of Central Excise, Ahmedabad-I 2020 (371) ELT 840 (Tri.-Ahmd) dated 21.06.2019, wherein it has been held that the activity undertaken by the appellant does not amount to manufacture, therefore, they are liable to pay service tax. 6. Heard the parties and considered the submissions. 7. Admittedly the appellant is engaged in the activity of printing and developing photographs in his colour lab for which they are procuring duty paid paper, chemical etc. from the market. They received only soft copy of photo to be printed ....
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.... 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. Ther....
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....was meant for wrapping and this end use remained the same even after printing. However, whereas blank paper could be used as wrapper for any kind of product, after the printing of logo and name of the specific product of Parle thereupon, the end use was now confined to only that particular and specific product of the said particular company/customer. The printing, therefore, is not merely a value addition but has now been transformed from general wrapping paper to special wrapping paper. In that sense, end use has positively been changed as a result of printing process undertaken by the assessee. We are, therefore, of the opinion that the process of aforesaid particular kind of printing has resulted into a product, i.e., paper with distinct....
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....as a manufacturer is also premised on the observations made by the Calcutta High Court in the case of A. Mukherjee & Co. (supra) and as stated earlier, we do not find that the language of Section 80-I of the Act support this contention." "18. Further, in the case of Jamal Photo Industries (P) Limited (supra), Hon'ble Madras High Court has examined the issue and observed as under:- "Whether in the facts and circumstances of the case, the Tribunal was right in holding that processing of the film and printing photographs from the negatives amounts to manufacturing activity and is an industrial undertaking eligible for the benefit of section 80-I" There cannot be any dispute that the expression "manufacture" invol....
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....and the appellant has classified accordingly. 20. We also take note of the fact that after introduction of GST, the classification of the same has been answered vide Circular F.No.332/2/2017-TRU dt. December, 2017 by observing that these items fall under HS Code 4911 an attract 12% GST. Sr No. Queries Replies 62 What is the classification and GST rate for photo books printed using digital offset printing press on printing paper [other than photo albums] and thereafter manually bound? 1. These items fall under HS code 4911 and attract 12% GST. 21. Further, we take note of the fact that Notification No.14.04- ST dt.109.2004 amended by Notification No.19/06-ST dt.25.4.2006 with effect from 1.5.2006, exempts ....