FOTO FLASH Vs. COMMISSIONER OF C. EX., BANGALORE

JUDGEMENT

(1.) THE appellant is required to pay service tax under two headings (a) an amount of Rs. 41, 69,972/ - on account of use of raw materials in the photographic services (b) an amount of Rs. 31,04,826/ - being the service tax on development of processing of photographic films under the heading Photography Services.

(2.) WITH regard to the first issue, the learned Counsel submits that it is no longer res integra and in an identical facts and circumstances in a competitors case the issue has been decided by this bench in the case of M/s. Adlabs v. CCE, Bangalore reported in 2006 (2) S.T.R. 121.

(3.) WITH regard to the second issue, the learned Counsel submits that photographic services were rendered to the studios, who receive the negatives from the customers for processing and developing the films. The appellants had given all the details of the studios from whom they have received the material for photography services. They had brought to the notice of the Department that the said studios had discharged the service tax and therefore, they were not liable to pay service tax. It is their contention that even in terms of the various definitions, they do not come within the ambit of service tax. He contends that the Department had six months time after they furnishing the details to make queries with the concerned studios, who were covered under the Service Tax Act and paying duty to verify the fact of they being sub -contractor and the duty having been discharged by the said principal studios. He submits that no such investigations were done and therefore, the appellants cannot be burdened with the service tax.