2023 (8) TMI 469 - AT - Central Excise

Classification of service - photography service or not - agreement with the District Election Officer Cum D.M., Lakhisarai, Bihar for execution of the work of preparation of photo identity card in terms of the said agreement - HELD THAT - The issue in dispute is settled in the case of COMMISSIONER OF CUS. C. EX., HYDERABAD-II VERSUS CMC LIMITED 2007 (7) TMI 17 - CESTAT, BANGALORE that the appellant is providing the service to District Election Officer for entire work of processing of EPIC, which consists of camping at several places for capturing photos of electors after verification, printing of details of electors, pasting of photo identity card, electors on cards, preparation of duplicate of EPIC in miniaturized form and the Tribunal also held that the preparation of EPIC is not covered under the photography service. Thus, the activity undertaken by the appellant for preparation of Election Photo Identity Card, does not qualify under Photography Service . Appeal allowed.

Summary

Issues involved:
The judgment involves the issue of service tax demand under "photography services" for the preparation of photo identity cards for the District Election Officer.

Summary:
The appellant entered into an agreement with the District Election Officer for the work of preparation of photo identity cards. The Revenue alleged that the appellant provided "Photography Service" to the District Election Officer, leading to a demand for service tax. The appellant argued that issuing electors photo identity cards is a sovereign duty under the Constitution of India and cannot be considered as "Photography Service." The Tribunal considered previous rulings and Circulars, concluding that activities performed by State functionaries for sovereign functions are not taxable. The Tribunal held that the preparation of Election Photo Identity Cards does not qualify as "Photography Service." As a result, the impugned order demanding service tax was set aside, and the appeal was allowed.