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TMI Blog2011 (4) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered under section 3B of the TNGST Act. In the circumstances we set aside the order of the Tribunal, thereby remand the assessment back to the assessing officer to consider the issue afresh in the light of the development of law in this regard. X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the Appellate Assistant Commissioner allowed the appeal. Aggrieved by the same, the Revenue filed appeals before the Sales Tax Appellate Tribunal. In respect of each of the assessee's cases, it was contended that a photographer took the photos of the customer in his camera and film and supplied the printed photo, which amounted to sale only. So also in the case of developing and printing. In the circumstances, the Revenue challenged the order of the Appellate Assistant Commissioner. The Tribunal considered the contention taken in the light of the decision reported in Rainbow Colour Lab v. State of Madhya Pradesh [2000] 118 STC 9 (SC) and held that the activity of the photo studio could not be assessed under the TNGST Act. As regards de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orks contract. Taking note of this amendment this court in Rainbow Colour Lab case [2000] 118 STC 9 (SC); [2000] 2 SCC 385 (page 12 of STC) pages 388-389 of STC) observed as follows: 'Prior to the amendment of article 366, in view of the judgment of this court in State of Madras v. Gannon Dunkerley & Co. (Madras) Ltd. [1958] 9 STC 353 (SC), the States could not levy sales tax on sale of goods involved in a works contract because the contract was indivisible. All that has happened in law after the 46th Amendment and the judgment of this court in Builders case [1989] 73 STC 370 (SC) is that it is now open to the States to divide the works contract into two separate contracts by a legal fiction: (i) contract for sale of goods involved in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of it. Apart from taking positive prints from the negatives supplied from the customers, the present tax cases also raise an issue as regards taking photographs, developing the negatives and supplying the prints. The learned counsel for the respondent/assessees pointed out that the Revenue had not taken a specific issue before this court as regards the turnover relating to taking photographs and the sitting charges, but had raised a dispute only as regards the turnover relating to developing the negatives and supplying the positive prints. Thus, going by the memorandum of grounds in the tax cases filed, the Revenue could not be said to have challenged the turnover on taking photographs and sitting charges. We do not find that this objecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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