2009 (1) TMI 183

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..... he value of taxable service. It has been held that cost of these materials consumed would be included in the taxable value. We find that the issue has been decided by the Tribunal in the case of Delux Colour Lab (P.) Ltd. v. CCE [2008] 17 STT 481 (New Delhi-CESTAT). The relevant portion of the said decision is reproduced below: "12. It would thus appear that the decision in BSNL's case (supra) lays down the law that works contract (and also catering contract) involves the element of both sale and service contract and that the service and sale elements can be split up. That being so, we do not find any merit in the submission of the revenue that the decision in BSNL's case (supra) cannot be treated as an authority on the issue of service ta .....

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..... bsp;        ** 16. The pronouncement of law by the Supreme Court is binding on all Courts and authorities under Article 141 of the Constitution of India. Any decision of the High Court or the Tribunal or even the Supreme Court of lesser Bench strength has to be understood, read down (if necessary) and applied in the light of the binding precedents of the Supreme Court. As observe above, the dispute involved in these appeals is covered by the decision in BSNL's case (supra) and, therefore, it is not necessary to make comments on the various decisions cited by the parties, referred to above. We are of the view that in the light of the law laid down by the Supreme Court in BSNL's case (supra) the matter has .....

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..... uthority for de novo consideration in accordance with law. The appeals are accordingly, allowed." (p. 489) 3. In view of the above decision of the Tribunal, we hold that the value of materials cannot be included while computing value of the photography service. We also notice that there is no suppression of fact with intent to evade payment of tax and therefore, extended period of limitation cannot be invoked. So, the demand of tax for extended period of limitation and penalties are set aside. The matter is remanded to the adjudicating authority to re-determine the tax liability after examining the value of taxable service in the light of above decision. The appeal is disposed of in the above terms.
Case laws, Decisions, Judgements, Or .....

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