(1.) THE dispute in these four appeals - which were heard together and are disposed of by this common order - relates to determination of the value of photography service as a taxable service for the purpose of levy of service tax under the Finance Act, 1994.
(2.) THE service "provided or to be provided to a customer by photography studio or agency in relation to photography in any manner" is a taxable service under Sub -clause (zb) of Clause 105 of Section 65 of the Finance Act, 1994. 'Photography Studio or Agency' has been defined in Clause 79 of Section 65 to mean, "any professional photographer or a commercial concern (now any person w.e.f 18.04.2002) engaged in the business of rendering service relating to photography". Section 67 of the Act deals with valuation of taxable services for charging service tax. As the provision stood at the relevant time prior to 18.04.2006 the value was to be computed on the basis of gross amount charged by the service provider for the taxable service provided or to be provided by him.
(3.) THE authorities below have held that the value of the photography service would be the gross amount charged from the customers including the cost of materials like papers, films and chemicals used in taking photographs and developing and printing films which form intrinsic part of the service and are not separable from the service rendered. The authorities below rejected the assessees' case that photography is in the nature of 'works contract' involving deemed sale of the said materials on which sales tax is payable under the relevant State enactments. The assessees have come in appeal to the Tribunal contending that they are liable to pay service tax only on the value of the service and not on the gross amount charged from the customers which includes cost of materials.