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2017 (7) TMI 719 - CESTAT CHENNAIValuation - Benefit of N/N. 12/2003 dated 20.06.2003 - The appellant had availed the benefit of the notification on bonafide belief that the cost of papers and chemicals consumed can be deducted from the taxable value of services - whether the appellant is eligible to deduct the cost of papers and chemicals consumed while providing the output service of 'Photographic Service'? - Held that: - the issue is settled by the Larger Bench judgment in the case of Aggarwal Colour Advance Photo System [2011 (8) TMI 291 - CESTAT, NEW DELHI (LB)], where it was held that The cost of unexposed film etc., would stand excluded in terms of Explanation to section 67 if sold to the client. Also, the value of other goods and material, if sold separately would be excluded under exemption N/N. 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. Time limitation - Held that: - except for a vague statement that the appellant has willfully evaded payment of service tax by availing the benefit of notification, there is no evidence to establish that the appellant has intentionally evaded payment of service tax - the show-cause notice issued is time-barred and, therefore, not sustainable. Appeal allowed on the ground of limitation.
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