9911796707
TMI Blog2020 (6) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... eal against the impugned orders. 2. The facts of the case are common in both the appeals; therefore, these appeals are disposed of by this common order. 3. The facts of the case are that the respondent is engaged in manufacture and sale of photobooks to photography studio or individual photographers who outsourced such work to the respondent against agreed consideration. The photographers/photo studio provides predesigned photos in soft form (CD/pen drive) to the respondents. The respondent cannot format, edit or alter the photographs received by it in the soft form. The customer specifies the nature of sheets, covers, etc. to be used in photo books. The respondent prints photographs on both sides of standard plain printing paper by using high quality digital press. Thereafter, the printed photo sheets are laminated on both sides and specified number of printed photo sheets are wirestapled on the stapling machine. Finally, plain sheets are pasted on both sides of stapled book and thereafter, cardboard cover having digital printed photographs of the function is pasted with the staple book to finally make a photo book. There is a complete change in the identity and nature of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Venus Albums Company Pvt.Ltd. (supra) wherein the facts of the case are as under:- 2. The brief facts of the case are that the appellant is having units at Chandigarh, Ludhiana and Amritsar and was carrying out the business of manufacturing and sale of photo books to photography studio or individual photographers who outsources such work to the appellant. The appellant was also engaged in the business of printing and selling of wedding cards, photo calendars, visiting cards, etc. During the year 2010-11, the appellant was also carried out the business of mere binding of books, registers, etc. The appellant was registered under the Central Excise law as manufacturer. The appellant was paying Central Excise duty on wedding cards, photo, calendars, etc. The photo books being classified under chapter heading 4911 of Central Excise Tariff Act, 1985 which attracted Central Excise duty at nil rate. The appellant filed ER-1 returns with the department wherein goods falling under chapter heading 4911 were separately mentioned. The appellant was also registered as dealer under Punjab VAT Act, 2005. The appellant was paying VAT on sale of photo book and other printed material viz. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... picture photography, laser photography, aerial photography or fluorescent photography. Section 65 (79): photography studio or agency means any professional photographer or [any person] engaged in the business of rendering service relating to photography. 14. Section 65 (105) (zb) defines the service provided to a any person by a photography studio or agency in relation to photography, in any manner. We also take note of the fact Chapter 49 covers printed pictures, designs and photographs and other product of printing industries. For better appreciation, Chapter 4911 is reproduced as under:- 4911 Other printed matters, including printed pictures and photographs. 4911 91 00 Pictures, designs and photographs 15. We take note of the fact that what activity has been undertaken by the appellant. We observe that the process of formation of photo book, the photographers provide predesigned photos in soft form via e-mail or on CD/Pen drive, to the appellant for supplying the photo book. In terms of the arrangement agreed, the appellant cannot format, edit or alter the photographs received by it in the soft form. The Customer specifies the nature of sheets covers, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd use of its own which it did not bear earlier. Thus, the test of no commercial user without further process would be applied as explained in paragraph 20 of Servo-Med Industries (supra). The aforesaid paragraph is extracted hereunder. 20. In Brakes India Ltd. v. Superintendent of Central Excise - (1997) 10 SCC 717, the commodity in question was brake lining blanks. It was held on facts that such blanks could not be used as brake linings by themselves without the processes of drilling, trimming and chamfering. It was in this situation that the test laid down was that if by adopting a particular process a transformation takes place which makes the product have a character and use of its own which it did not bear earlier, then such process would amount to manufacture irrespective of whether there was a single process or several processes. 17. Further, Hon ble Delhi High Court in the case of Delhi Press Patra Prakashan (supra) has examined the issue and observed as under:- .........We do not think that we can read in this observation of Calcutta High Court, a decision that printing activity carried on by a publishing house may amount to manufacture does not ipso f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said activity merit manufacturing activity and classified under Chapter 4911 and the appellant has classified accordingly. 20. We also take note of the fact that after introduction of GST, the classification of the same has been answered vide Circular F.No.332/2/2017-TRU dt. December, 2017 by observing that these items fall under HS Code 4911 an attract 12% GST. TABLE S.No. Queries Replies 62 What is the classification and GST rate for photo books printed using digital Offset printing press on printing paper [other than photo albums] and thereafter manually bound? 1. These items fall under HS code 4911 and attract 12% GST. 21. Further, we take note of the fact that Notification No.14.04- ST dt.109.2004 amended by Notification No.19/06-ST dt.25.4.2006 with effect from 1.5.2006, exempts specifically the activity of printing from payment of service tax. 22. We also take note of the fact that the service exempted in terms of Notification No.25/2012-ST dt.20.6.2012 amended by Notification No.44/2012-ST dt.7.8.2012, 49/2012-ST dt.24.12.2012 and Notification N ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
