9911796707
TMI Blog2013 (8) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... by a collection centre, are not taxable in the category of photography service. - prima facie case in favor of assessee - stay granted. - ST/888 of 2012 - MISC. ORDER NO.57585/2013 - Dated:- 22-4-2013 - G Raghuram And Sahab Singh, JJ. For the Appellant : Shri Ashish Vaish, ACA. For the Respondent : Shri Govind Dixit, DR. PER : G Raghuram Misc. Application No. 56555/2013 is for re-call of the order dated 8.1.2013 whereby stay application No.2216/2012 in the appeal was disposed of ex. party directing deposit of the entire amount of service tax of ₹ 3,27,136/- within six weeks and report compliance by 7.3.2013, by recording that there was no appearance on behalf of the petitioner/appellant despite earlier notice in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce dated 16.11.2009 alleging failure to remit service tax in full including amounts received under the collection activity, for the period 2004-05 to 2008-09. Admittedly, the petitioner had paid service tax in respect of what it admitted to be the chargeable service i.e. in relation to income received from transactions pertaining to collection of photograph negatives for manual enlargement done by itself. According to the petitioner, it failed to declare the income relatable to mere collection of photographs from customers for onward transmission to other photographic labs for processing and re-collection of the processed material for return to the customers, on the basis of the Board's Circular dated 27.12.2001 which, to the extent rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 65(105)(zb) of the Act defines the same as any service provided to a customer, by a photography studio or agency in relation to photography, in any manner, that Section 65 (79) of the Act defines photography studio or agency; that the Circular dated 27.12.2001 was withdrawn by another Circular dated 10.5.2007; and therefore it is clear that the activity of the petitioner in collection of photography material and getting the same developed from different laboratories for the customers falls under the category of photography service and the consideration received on that account is equally liable to service tax. 6. On true and fair construction of the relevant statutory provision, it is perhaps possible for Revenue to contend th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBEC an intention that undertaking a non-taxable work while having a facility from which taxable activity could be generated, would render an otherwise non-taxable activity taxable only on that account. In our considered view, the Board Circular pre-supposes processing of photographic material in a processing facility of the assessee or through its photographers and not the mere activity of collection of photograph/photography material, for transmitting to another laboratory for processing. This is clear from the last sentence of the board's circular which indicates that where a collection centre which acts merely as a courier commission agent does perform no taxable service and the services provided by a collection centre, are not tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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