2011 (8) TMI 291 - CESTAT, NEW DELHI (LB)

Valuation of photography services - exemption Notification No. 12/2003 - Whether for the purpose of section 67 of the Finance Act, 1994 the value of service provided in relation to photography would be the "gross amount charged" including the cost of material, goods used/consumed minus the cost of unexposed film - Held that: - There is no doubt that papers, consumables and chemicals are used and consumed to bring photographs into existence. - It is also quite true that no service recipient goes to a photography service provider to buy paper, chemicals and other photography materials - For the purpose of section 67 of the Finance Act, 1994, the value of service in relation to photography would be the gross amount charged including cost of goods and material used and consumed in the course of rendering such service. The cost of unexposed film etc., would stand excluded in terms of Explanation to section 67 if sold to the client. - The value of other goods and material, if sold separately would be excluded under exemption Notification No. 12/2003 and the term 'sold' appearing thereunder has to be interpreted using the definition of 'sale' in the Central Excise Act, 1944 and not as per the meaning of deemed sale under Article 366(29A)(b) of the Constitution.