2010 (5) TMI 227 - CESTAT, NEW DELHI

Valuation- The dispute is only over the assessable value of the taxable service. The value of any taxable service shall be the gross amount charged by the service provider for such service provided by him” and as per Explanation to this Section, the value of taxable service, in case of service in relation to photography, does not include the cost of unexposed photography film, unrecorded magnetic tape or such other storage devoice, if any, sold to the client during the course of providing the service. The point of dispute is as to whether the assessable value of photography service is “gross amount charged for the service minus the cost of unexposed photography film, if any, sold”, as contended by the Department or the “gross amount charged minus the cost of all the materials used as well as the cost of unexposed film, if any sold. Held that- film and chemicals incidentally used for providing photography service. Measure of tax being gross value, use of goods in providing service not charges nature and measure of tax. Sale of goods not involved in photography service. cost of paper, chemical and consumables includible in taxable value for service tax. - referred to Larger bench