JAIN BROTHERS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellants are rendering photography services falling under Section 65(105)(zb). The dispute involved in the present appeals is, regarding the valuation of the said services. The department has included the value of printing paper and chemicals which have gone into preparation of photo prints. Learned advocate relies on the decision of the Tribunal in the case of Deluxe Color Lab. (P) Ltd., wherein it has been held that photography service is a works contract involving both the elements of sale and service and the value of sale portion cannot be subjected to service tax.

(3.) IN view of the above, we allow the appeals on merit and hold that the portion of value relating to sale is not to be included for levy of service tax. The question of applying extended period of limitation and imposition of penalties does not arise. As the authorities below have gone on the understanding that the entire value of both service and sale has to be taxed and have not gone into the correctness of the quantum of abatement towards value of goods sold, we feel that it would be appropriate to remand the matter to the original authority to the limited purpose of determining the valuation in terms of the above decision and consequent demand of differential tax, if any, as per the said decision.