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Photography Services [Sec 65(105)(zb)]
Effective upto 30th June, 2012
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Landmark Service Tax Judgment - Photography Services

INTRODUCED : With Effect From 16th July 2001
 
Contents
Scope
Exemption
Relevant Notifications / Circulars
Landmark Judgements
News
Accounting Code
Service Tax 00440129
Interest  00440130
Penalty 00441327
 
DEFINITION:

According to Section 65 (105) (zb), any service provided or to be provided to any person, by a photography studio or agency in relation to photography, in any manner, is a ‘taxable service’. Audemars Piguet Replica Watches

According to Section 65 (78), “photography” includes still photography, motion picture photography, laser photography, aerial photography or fluorescent photography.

According to Section 65 (79), “photography studio or agency” means any professional photographer or any person engaged in the business of rendering service relating to photography.

 
SCOPE:
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Photography means “process of obtaining the permanent image of an object either in black or white in color and treated on paper or film. Still photography is the one in which the object photographed is static. It can be taken indoor or outdoor; it can be of live or lifeless objects. There are photography processing laboratories which carry out the function of washing and developing the negative film and printing the image on the paper from washed and developed film. These services are in relation to photography and liable for service tax.

Motion picture photography is a series of pictures projected on a screen in a rapid succession with objects shown in successive positions slightly changed so as to produce the optical effect of a continuous pictures in which objects move, a representation(as of a story) by means of motion picture.

Laser photography is a type of photography where laser lights are used for giving effects to picturisation.

Aerial photography is taken in the open air by using aircraft or air balloons. It is used for picturisation of various aerial acrobatics and surveying of natural calamities like flood, earthquake etc.

Fluorescent Photography is a photography wherein fluorescent lights are used.
Photography with the help of digital cameras, cinematographic camera and television camera are all included within the purview of this service.

The following activities don’t fall in the purview of this service:

1.  X Ray and CT Scan Centers

2. Artist making portraits of person, building on canvass without use of camera

3. Person engaged in business of selling photo films

4. Taking photographs of voters for issue of photo identity cards on behalf of Election Commission.

5. Person carrying out activity of producing photo identity cards and bus passes are not liable to service tax under this category

6. Person engaged in video tape recording service.

 
SERVICE TAX EXEMPTIONS:
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(a) Small service providers whose aggregate value of taxable services rendered in the previous year has not exceeded the limit of Rs. 10,00,000/-  (Service Tax Notification No. 08/2008-S.T., dated 01.03.2008)

(b) Services provided to the United Nations or International Organisations

(c) Services provided to Special Economic Zones (SEZ) units (including unit under construction) and SEZ developers roger dubuis replica

(d) Services which are exported as per ‘Export of Services’ Rules

(e) Services provided for official or personal use of foreign diplomatic missions and family members of diplomatic missions.

(f) Services provided by Reserve Bank of India

(g) Out of total value of service provided proportionate value of goods and material provided by the Service Provider

 
RELEVANT SERVICE TAX CIRCULARS/INSTRUCTIONS/TRADE NOTICES:
TOP
Service Tax CBEC Instruction Letter (File No. B11/1/2001-TRU) dated 09-07-2001
 
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Case Laws Related

  • STO 2013 CESTAT 1047
  • Photography Service: Respondents provided the service of preparation of "Mat Data Panchan Patra" [Election Photo Identity Card] (EPIC) to Election Office Lucknow (U.P.) and received service charges: Not covered under Photography Service: Departmental appeal dismissed.

  • STO 2013 CESTAT 930
  • Photography Service: Penalty: Leviability of Service Tax on Photographic Services was under litigation. As appellant has paid up the entire service tax liability along with interest before the issue of show cause notice, it is a fit case for invocation of Sec.80 of the Finance Act,1994.

  • STO 2013 CESTAT 1218
  • Photography Service: Valuation: Demand: Stay: Larger period: Longer period cannot be invoked when divergent view: Pre deposit waived.

  • STO 2013 CESTAT 771
  • Photography Service: Valuation: Service Tax under section 67 is leviable on the gross value of the photographic service which includes the value of chemicals and components which are consumed on the process of the service provided.

  • STO 2013 CESTAT 340
  • Photography Service: Activity of collection of negatives of photographs from customers, for forwarding the same for processing to different photography agencies and re-collection of such processed material for return to the customers, also constitutes the taxable photography service: Pre deposit waived as per Circular dated 27.12.2001.

  • STO 2013 CESTAT 152
  • Photography service: value of material to be included in taxable value: Larger period cannot be invoked as before Larger Bench decision the issue was in dispute.

  • STO 2012 CESTAT 905
  • Photography Service: Inclusion of cost of materials was in dispute due to divergent views of Tribunal: Bonafide case if value not included by appellants: Limitation: Demand for 2003-2006 raised in 2009 hopelessly time barred: Appeal allowed on limitation ground.

  • STO 2012 CESTAT 577
  • Photography Service: Valuation: Value of materials used for photographic services required to be added to taxable value: Limitation: inasmuch as there was confusion during the relevant period, no malafide can be attributed to the assessee justifying longer period of limitation.

  • STO 2012 CESTAT 314
  • Valuation: Photography service: Value of chemicals used in processing of films to be included in the taxable value.

  • STO 2012 CESTAT 166
  • Photography Service: Value of materials required to be included in taxable value: However, larger period not invocable as there were divergent views of various Courts on the issue. 

  • STO 2012 CESTAT 211
  • Photography Service: Value of Consumables includible for service tax: Larger period not invokable as at the material time there were decisions holding that such value was not required to be included. 

  • STO 2010 CESTAT 293
  • Service Tax: Photography Services: Tax on trading: Remand: All the invoices enclosed pertain to the trading/sale by the appellant to various customers which are not the invoices for the services render to their customer. The appeal is allowed by way of remand to the Commissioner to pass the necessary orders after examining the documents produced by the appellant and appellant is also directed to produce the documents in support of their claim as required by the Commissioner for verification. Accordingly, the appeal is disposed of. (para 7)

  • STO 2010 CESTAT 224
  • Photography Service: Income surrendered to Income Tax: income voluntarily disclosed before the income tax authorities could not be added to the taxable value unless there is evidence to prove the same.

  • STO 2010 CESTAT 45
  • Service Tax: Photography Service: The appellants have charged their customers the gross value and the full service tax on such value. Prima facie, Notification No. 12/2003-ST dated 20.6.2003 is applicable when the service provider also sells the goods and material along with taxable service. This exemption is also subject to there being documentary proof indicating value of the goods and materials. Prima facie, the invoices issued by the appellants do not indicate separately the value of the goods and materials. Moreover, they have only provided photographs in print to their customers. (para 6)

    Service Tax: Photography Service: Section 11D: Pre-deposit: Demand under Section 11D is hit by time bar prescribed under Section 11A is without much merit. The appellant-assessee have collected from the public service tax amount on the gross value charged by them but have only remitted part of it to the Exchequer, they have retained the differential amount with them. The balance of convenience will lie ordering the appellant-assessee in such a circumstance to pre-deposit the entire amount, of differential tax amount retained by them so far, as pre-deposit as such direction can cause no undue hardship. (para 7)

  • STO 2010 P&H 1
  • Photography Service: The components of sale of photography, developing and printing etc. are clearly distinct and discernible than that of photography service. The photography is in the nature of works contract and it involves the elements of both sale and service, therefore, the Service Tax is not leviable on the sale portion.

  • STO 2009 CESTAT 1714
  • Service Tax: Photography Services: Notification No. 12 /2003-ST dated 26.2.2003: Cost of material supplied: The verification as directed by the Hon'ble Supreme Court is caused and the authorities have verified and reported that the assessee had maintained the records of the inputs used for rendering photography service during the material period. The assessee is entitled to the benefit of the notification sought to be denied by the lower authorities and that it was not liable for the penalty imposed on it. (para 5)

  • STO 2009 CESTAT 311
  • Valuation: The portion of the value relating to photography materials would not be included in the levy of service tax.

  • STO 2009 CESTAT 111
  • Photography Service: Value of materials whether includible: Revision Order: Orders of the Commissioner reversing the decisions of the original authority to exclude the value of materials sold/deemed to have been sold for purpose of demanding tax are not sustainable.

  • STO 2009 CESTAT 105
  • Service Tax: Photography services: Whether the services rendered by the respondent to the studios/professional photographers/free lancers will also attract service tax at the hands of the respondent: Scope: Remand: Various studios act as collection centers of negatives and transmit to the lab of the respondent for further processing and they are not required to pay service tax in terms of ST Circular No.37/5/01 dated 27.12.2001. Commissioner (Appeals) has satisfied himself from the certificates placed before him that the studios, free lancers/photographers were registered with the excise authorities and have paid service tax. The adjudicating authority has not discussed the expert's report and certificate produced by the appellants, therefore, the impugned order is not speaking. In this, regard, the appellant has submitted the copies of certificate issued to various studios/professional photographers, by the various Central Excise Officers, evidencing for payment of service tax under the category of photographer, the adjudicating authority has not discussed the expert's report and certificate produced by the appellant, therefore, the impugned order is not speaking.” The observation of the Commissioner (Appeals) that the adjudicating authority has not issued a speaking order is relevant. Matter remanded(Para 5,6,8).

    Appeal allowed by way of remand.

  • STO 2009 CESTAT 488
  • Photography Services: Cost of the materials supplied during the course of the photography service is not to be included for calculation of the service tax liability.

    Invocation of extended period: Time barred: The respondents had been regularly filing the returns. At that time, no objection had been raised by the department. Even when the respondents surrendered the registration certificate, Revenue did not take any action. In these circumstances, longer period could not have been invoked.

  • STO 2008 CESTAT 298
  • Stay: Photography Service: Valuation: Bills produced by appellant show bifurcation of material and services cost, Matter remanded.

  • STO 2007 CESTAT 1343
  • Levy : Service tax not leviable on the photo identity cards prepared on behalf of Election Commission of India. Tribunal relied upon its own decisions on this issue.

  • STO 2007 CESTAT 1369
  • Photography service : Deductions admissible. The appellants have been denied the benefit of Notification No. 12/2003. The appellants are entitled to claim the benefit of deductions in respect of inputs used in the photography services. The Tribunal has already held that the details of inputs used need not be mentioned in the invoices/bills issued by them, as there is no specific clause in the Notification. The citations are clearly applicable to the facts of the case.

  • STO 2007 CESTAT 1078
  • Photography services : Inclusion of value of materials and other consumables in the taxable value of Photographic Services and denial of exemption under Notification No. 12/2003-ST dated 20-6-2003. Issue already decided. Appeal allowed.

  • STO 2007 CESTAT 1232
  • Stay : Photography Service : Whether the overtime work done by the employees can be said to be, directly or indirectly, in relation to the taxable service of photography would certainly depend on the terms and conditions of the agreement. No agreement brought on record. Prima facie case not made out.

  • STO 2007 CESTAT 1100
  • Sub-contractor : The taxable service is rendered by sub-contractor, he is not liable to pay service tax.

  • STO 2007 CESTAT 1055
  • Stay: Photography service: Activity of preparing Photo Identity Cards for Election Commission was falling under the category of Central Excise Act and exempted under Circular No.141/52/95-CX, dated 14-8-1995.  Matter already decided by Tribunal. Asks department to confirm whether earlier of Tribunal has been accepted. Stay application of department rejected. Out of turn hearing request allowed.

  • STO 2007 CESTAT 1071
  • Photography services : Earlier decision of Tribunal holding that value of goods and materials consumed during photography service not includible in taxable value is good law as the same has not been set aside by the Apex Court. Judicial discipline followed. Appeal of department rejected.

  • STO 2007 CESTAT 1094
  • Cost of material : Cost of material used/sold while rendering the service were not includible in the value of the taxable service.

  • STO 2007 CESTAT 1112
  • Stay: Photography service: Appellant unable to produce invoices to show that the taxable value includes value of camera and photo frames. Chartered Accountant’s certificate produced. Prima facie case not made out. Directed to deposit further sum.

  • STO 2007 CESTAT 1419
  • Photography Service : Deductions : Demand of service tax on the elements of inputs used in the photography services. Appellants are professional photographers. Issue covered in the case of Shilpa Color Lab wherein it is opined that because of photography film, magnet type or other storage devise are excluded from purview of service tax when they are sold to the clients.

  • STO 2007 CESTAT 101
  • Photography Service: The issue of Electors Photo Identity Cards cannot be considered as "Photo Identity" falling within the definition of "Photographic Service" as per Section 65(78) as well as Section 65(79).

  • STO 2007 Raj 1309
  • Photography Service: Valuation: The claim to bifurcate gross receipts of processing of photograph between goods supplied and service of processing rejected.

  • STO 2007 CESTAT 372
  • Service Tax: Photography services: Taxable value to include cost of material: In view of the fact that the assessee has already paid 30% of the total turn over. The Hon'ble High Court after taking into consideration the decision of Hon'ble Supreme Court in the case of Bharat Sanchar Nigam Ltd. & Another v. Union of India & others as reported in STO 2006 SC 19 granted stay. In a similar situation the Hon'ble High Court of having jurisdiction over applicant has already stayed the recovery of the amount of service tax which is demanded on the same ground.(Para 3).

    Pre-deposit waived, stay allowed.

  • STO 2007 CESTAT 443
  • Service Tax: Appeal: COD Clearance: Board has denied to refer the matter to COD due to smallness of the demand involved. Appeal of Revenue is dismissed.

  • STO 2007 CESTAT 31
  • Service Tax: Photographic service: Taxable value not to include cost of material: On the same issue, the Tribunal vide stay order dt. 19-12-06 allowed pre-deposit the amount of service tax and penalty. (Para 1).

    Pre-deposit waived.

  • STO 2007 CESTAT 47
  • Service Tax: Photographic Services: Scope: The preparation of photo identity cards cannot be considered to come within the category of Photographic Services. The definition of photographic service does not contemplate the taking of photos for identity cards. In the common parlance, photographic service includes development of negatives. It includes taking of photos from various angles and the individual will not also be aware when photos are taken. Photography includes taking photo of animate or inanimate object either still or in motion. While in this case, only the face portion is photographed directly on the identity card. In similar matter, the Hyderabad Commissionerate has accepted the assessees' plea in the case of CMC Ltd. STO 2007 CESTAT 102 and the Revenue's stay application has been rejected.(Para 4).

    Pre-deposit waived, stay allowed.

  • STO 2007 CESTAT 102
  • Service Tax: Photography service: Scope and liability: The issue is also covered by Board Circular No. F. No. B-11/1/01 TRU dated 9-7-01 which clarifies that this activity of taking photo identity card do not come within the ambit of photography.(Para 2).Commissioner has allowed the assessee's claim holding that the contract entered into with the District Election Officer to take photographs of voters for issue of Electors Photo Identity card does not come within the ambit of photography. He has relied on the Tribunal ruling rendered in the case of Daelim Industrial Co. Ltd., STO 2003 CESTAT 9.(Para 1,3).

    Stay application rejected.

  • STO 2007 CESTAT 302
  • Service Tax: Photography services: Photo lab and photo studio: Penalty: During the said period there was lot of confusion as to whether the photographer has to pay tax or the photo lab has to pay the tax. Accordingly, tax was not being deposited by them, which was ultimately deposited along with interest amount and 25% of penalty which is not being disputed, the balance amount of penalties are set aside,(Para 3).

    Appeal disposed of.

  • STO 2007 CESTAT 577
  • Photography service: Service tax was paid on the labour component and was not paid on the material cost. This conduct was in tune with the Board's first clarification. Commissioner (Appeals) ought to have granted waiver and stay and considered the appeals on merits.

  • STO 2006 CESTAT 255
  • Service Tax: Photography services: Demand: Penalty: Commissioner (Appeals), has come to the conclusion of reducing the service tax liability and the penalty after taking into consideration the original receipt books and other documents produced by the respondent in proof of his actual income from photography services.(Para 6). Commissioner (Appeals) has authority to consider and reconsider the liability of service tax interest and penalty, to come to that conclusion, he can go through the evidences that may be produced before him. He has correctly followed the provisions of Section 85(4) of the Finance Act and redetermined the service tax liability interest and penalty thereof.(Para 8).
    Revenue appeal is dismissed.

  • STO 2006 CESTAT 721
  • Photography Service: In processing and printing of photos, there is definitely an element of service and it is difficult to accept the contention that the activity is only that of sale. In fact, there is a mixture of both service and sale. In the services relating to photography, if certain goods and materials are consumed, then the value of those goods and materials cannot be included in the value of the services for levy of Service Tax.

  • STO 2006 P&H 354
  • Service Tax: Photography Services: Alternative Statutory remedies not exhausted: The questions raised in the writ petition need not be gone into at this stage, alternative remedies being available to the petitioners to raise all the said questions at the appropriate stage. In view of existence of alternative statutory remedies, the preliminary objection raised on behalf of the respondents that at the stage of show cause notice, this court should not interfere in exercise of writ jurisdiction is upheld. (para 10,11)

  • STO 2006 CESTAT 789
  • Service Tax: Photography services: Taxable value: This issue had come up before this Tribunal earlier, when the Hon'ble Supreme Court judgment in the case of C.K. Jidheesh v. Union of India, as reported in 2006 (1) S.T.R. 3 (S.C.); = STO 2005 SC 36 was heavily relied upon so as to arrive at the conclusion that in services like photography, there was no element of sale of goods. However, the learned counsel for the applicant is agitated about the very purpose of issuing of notification which is again equally supported by the Hon'ble Supreme Court. The whole matter therefore needs an in-depth examination at the time of final hearing.(Para 5).
    Pre-deposit ordered.

  • STO 2006 CESTAT 722
  • Service Tax: Photography services: Details of inputs used to appear in invoices: Notification No. 12/2003-S.T., dated 20-6-2003: On the same issue, this bench has allowed the appeal in the case of Adlabs v. CCE, Bangalore - STO 2006 CESTAT 3.(Para 1,4).

    Pre-deposit waived, stay allowed.

  • STO 2006 MP 116
  • Photography Service: Petitioner paid service tax on 30% of the turnover representing services and remaining 70% being transfer of property in goods, demand stayed.

  • STO 2006 CESTAT 122
  • Service Tax: Stay applications: Photographic services: The issue involved in this appeal has been decided finally in the case of M/s. Adlabs v. CCE, Bangalore by Final Order No. 62/2006 dated 16-1-2006, STO 2006 CESTAT 3 in assessee's favour and the issue has been clarified by the Board's Circular and Notification itself, as noted in the cited order. Inputs are not required to be separately shown in the invoices. (Para 4).

    Stay application allowed.

  • STO 2006 CESTAT 356
  • Service Tax: Photographic services: Taxable value: Contention of the appellant is that cost of material is not to be added while calculating the Service tax on the service provided by them, this issue is already decided by the Tribunal in the case of Laxmi Color (Pvt.) Ltd. in Appeal No. ST/73/2005, dated 6-6-2006 STO 2006 CESTAT 67  in favour of revenue.(Para 1).

    Appeal dismissed.
     

  • STO 2006 CESTAT 401
  • Service Tax: Photography Services: Taxable value: So far as the first issue regarding use of raw materials in the photographic services, prima facie the issue is fully covered by the ruling rendered by this bench in the case of M/s. Adlabs v. CCE, Bangalore reported in STO 2006 CESTAT 3  In so far as the second issue regarding service tax on development of processing of photographic films, there is no evidence produced on behalf of the principal studio about the service tax discharged on the activity carried out by the appellant and returned to the principal studios.(Para 5).

    Pre-deposit ordered.
     

  • STO 2006 CESTAT 244
  • Service Tax: Photographic services: Taxable value: The notification exempting the value of consumables from the gross billing was issued only at a later date. Therefore, the appellants conceded the liability to pay the short payment during the relevant period, which squarely rests on the appellants.(Para 4,6).

    Penalty : As regards the equal penalty under Section 78 of the Finance Act is concerned, we find that there is no mala fide intention and the short payment was on account of mis-interpretation of the legal provisions. Hence, the penalty levied under Section 78 of the Finance Act is set aside. As regards penalty levied under Section 76, the same is reasonable.(Para 6).
    Stay application disposed off.

  • STO 2006 CESTAT 69
  • Stay: Management Consultant Service: Mere facts of non-registration by itself will not be a ground to come to a conclusion that there was suppression of facts.Waiver granted.

  • STO 2006 CESTAT 20
  • Service Tax: Photography service: Enhancement of penalty in the review order: The decision of the Tribunal in the case of Bharat Security Services & Worker's Cont. (supra) squarely applies in this case. The Tribunal in that case in Para 4 as held has under:- "Revenue filed these appeals against the orders-in-appeal whereby the penalties imposed on the respondents were set aside as the respondents paid Service tax along with interest prior to 23-9-2004. The Commissioner (Appeals) in the impugned order held that a Voluntary Disclosure Schemes known as Extra Ordinary Tax Payer Friendly Scheme was circulated vide letter dated 23-9-2004. Under this scheme any service provider who got registered up to 30-10-2004, are not liable for any penal action. The Commissioner (Appeals) held that in view of the immunity from penalty action under this Extra Ordinary Tax Payer Friendly Scheme, no penalty is imposable on the respondents, as they have paid service tax prior to 30-10-2004." Appellants' case is covered by the order of the Tribunal in this case and enhancement of penalties as ordered by the Commissioner in his Review Order is liable to be set aside.(Para 5,6).

    Appeal allowed.

  • STO 2006 CESTAT 3
  • Photography Services: Commissioner not justified in taking the cheap fake watches online shop view, in contra to the Board's letter and the Notification Photography services-Board's clarification in letter No. 233/2/2003-CX. 4, dated 7-4-2004 and Notification No. 12/2003-S.T., dated 20-6-2003 nowhere state that inputs used to be mentioned in the invoice/bills issued. 

  • STO 2005 CESTAT 95
  • Service Tax: Photography services: Demand: Col. 5 of the ST-3 Return is for "amount of service tax adjusted in terms of sub-rule (3) of Rule 6 of Service Tax Rules, 1994". From the figures given in this Col. 5, it cannot be made out whether the applicant has paid any service tax or not paid service tax on disputed amount. Therefore, the Revenue has correctly applied the extended period.(Para 1).

    Pre-deposit ordered.
     

  • STO 2005 SC 36
  • Photography service: Board’s circular clarifying the provisions of section 67 cannot be challenged, challenge has to be of the legal provisions of Finance Act, 1994.

    Discriminatory approach: Plea not accepted as the services which are based on contract involve only service and commission, whereas, photography service includes cost of materials and value of services. Hence, no discrimination.

  • STO 2005 CESTAT 4
  • Photography service : Dispute regarding abatement to be allowed towards cost of photographic paper and chemicals while subjecting photography services to service tax. Held that prima facie while rendering photography service cost of photographic paper and chemicals not excludable. Service tax to be deposited on the deposition of which pre-deposit of penalty to be waived and recovery stayed.

  • STO 2005 CESTAT 111
  • Service Tax: Photography services: Valuation of taxable service: In rendering photography services, there is no sale of material and therefore, no reduction is permissible in terms of exemption Notification No. 12/2003 dated 20.06.2003. Perusal of the records makes it clear that no evidence has been produced to show that the appellant was selling material separately. The Revenue's contention that there is no sale in rendering photography services is prima facie sound.(Para 3).

    Stay application rejected, pre-deposit ordered.
     

  • STO 2005 CESTAT 326
  • Service Tax: Photography services: Demand: The appellants have not contested their liability to pay the service tax after having got themselves registered with the competent authority. Their plea that, they were under the impression that the services offered by them were not subject to service tax had been rightly not accepted by the authorities below as they were fully covered under the provisions of Service Tax Act w.e.f. 16-7-2001.(Para 2).

    Appeal dismissed.

  • STO 2002 Ker 45
  • Service Tax: Photography Services: Service Tax different from Professional Tax: For the levy of service tax, the taxable event is the rendering of service, and not the fact of belonging to a profession, trade, calling or employment. A tax on the latter would fall within the exclusive legislative competence of the State Legislature under Entry 60 of List II; the former would be within the legislative competence of Parliament relatable to Article 248 read with Entry 97 of List I of Seventh Schedule to the Constitution (para 9)

    Service Tax: Photography Services: Tax is on the Service: Taxable Event is the Service: Parliament by imposing service tax has neither taxed the material, nor the sale thereof. What has been taxed is the service rendered by the photography studios and agencies, which was hitherto untouched. Once the taxable event is determined as the service rendered, and not the sale of goods, irrespective of whether it is a works contract or a contract for sale of goods, the taxable event would occur. The taxable event determines the true event of tax; the measure of tax does not determine the nature of tax, but the quantum of tax which can be levied and collected. (para 10,11)

    Service Tax: Photography Services: Double Taxation: Unless the Constitution expressly or impliedly forbids double taxation, as long as the statute is within the competence of the Legislature, double taxation cannot be a ground for invalidating a fiscal statute. Nothing can be said to be double taxation, unless there is taxing of the same property or subject twice, for the same purpose, for the same period and in the same territory. (para 12)

    Service Tax: Photography Services: Legislative Discretion:It is a basic principle of taxing statute that Parliament need not tax all in order to tax some. The Parliament has wide discretion in choosing the objects it decides to tax as long as within the same category there is no discrimination. (para 13)

    Service Tax: Photography Services: Value of Taxable Service: Discrimination: The next contention is that clause (b) of explanation to S. 67, which excludes the costs of unexposed photography film, unrecorded magnetic tape or such other storage devices sold to the client during the course of providing the service from the value of taxable service, is discriminatory in the valuation of taxable service. Nothing discriminative or violative of the fundamental right guaranteed under Article 14 in such valuation. The Courts should be very slow in holding that a fiscal statute is discriminatory and violative of Article 14. By adopting a thumb rule of excluding the elements in clause (b) of S. 67, it is not possible to take the view that there is discriminative legislation so as to attract Article 14. (para 14)

    Service Tax: Photography Services: Fundamental Right: Infringement: A fiscal statute do not, per se, imposes a restriction on the practising the profession or carrying on any occupation, trade or business. It merely renders the person doing so liable to pay tax. Secondly, it cannot be gainsaid that the levy of tax, even if construed as a restriction on the carrying on the occupation, trade or business, is in the interest of raising revenue, and, consequently, in the interest of general public at large. That the legislation is reasonable is obvious, when the rate of tax levied is merely five per cent of the gross value of the taxable service. (para 15)

    News Related

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