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Issues Involved:
The issue involves denial of deduction of cost of material used in providing photography service under Section 65 of Finance Act. Summary: Issue 1: Denial of deduction of cost of material used in providing photography service The appeal arose from Order-in-Appeal No. 81/2005 (ST) where duty demand was confirmed by denying the claim of deduction of material cost in photography service under Section 65 of Finance Act. The appellant contended that Service Tax should not be levied on material used in providing photographic service. They relied on Notification No. 12/2003-S.T. and Board's Clarification. The Commissioner denied the claim stating material used was not indicated in the invoices. The Counsel argued that records were maintained as per the Board's circular, and it was not necessary to show material in invoices. The Tribunal observed that the Commissioner's view was unjustified as the appellants had maintained records of inputs used in photography, as per the Board's letter and Notification. The denial of benefit by lower authorities was deemed incorrect in law. The appellants were found eligible for deduction as per the Board's circular and the Notification. The impugned order was set aside, allowing the appeal. *(Operative portion of this Order was pronounced in open court on conclusion of hearing)*
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