2019 (1) TMI 506

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..... peal allowed - decided in favor of appellant. - Appeal Nos. ST/546 to 548/2011 - Final Order Nos. 43119-43121/2018 - Dated:- 17-12-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. Krithika Jaganathan, Advocate for the Appellant Shri A. Cletus, Addl. Commissioner (AR) for the Respondent ORDER Per Bench Brief facts are that the appellants are engaged in post-production services and provide specialized data processing services to customers according to their specifications. They are engaged in rendering services like creation of special effects, improving the quality of picture or image and convert the digital image file to film etc. For carrying out such wo .....

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..... l image files are converted to 35mm film by processing digital data received on various input media as stated above to increase sharpness as the images are blown up from a low resolution digital format to high resolution film format. 3. The above services are provided to domestic as well as customers located outside India and the appellant has discharged service tax by classifying them under photography services for the services rendered to domestic customers. For transactions with foreign customers, no service tax was paid as these amounts to export of services. The department has demanded service tax by classifying the activity as Video Tape Production Services. For the activity to fall under Video Tape Production Services, the appe .....

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..... athom how the adjudicating authority, having stated that the appellants are not engaged in the recording of any programme etc. has concluded that services or restoration, giving special effects etc. on the old films would be a Video Tape Production . Ostensibly, the department and the adjudicating authority have been influenced by the second limb of the definition of Video Tape Production in Section 65(120) of the Act. The definitions have to be read in totality and part thereof cannot be picked up to justify that the activities performed in the instant case will come under Video Tape Production Services . That would like putting the cart before the horse. The statutory provisions relating to taxation have to be construed literally with .....

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