9911796707
TMI Blog2024 (12) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.07.2023, insofar as the impugned proceedings levies taxes on the value of material involved in processing and supplying of photographs, photo prints, negatives on the premise that photography is an activity of service on which no tax could be levied. 2. It is submitted by the learned counsel for the petitioner that the petitioner is a dealer registered under the TNVAT Act and engaged in digital photography. The petitioner suffered an original order of assessment vide proceedings dated 14.08.2020. The assessment order was made on the basis of alleged mismatch with regard to certain purchases made by the petitioner, which are stated to be unaccounted and an estimation of the sales turnover was thus made and a turnover of Rs. 41,00,951/- wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority set aside the levy of tax on the estimated sales turnover of Rs. 41,00,951/- with a direction to the Assessing Officer to follow the guidelines laid down by this Court in the case of Tvl.JKM Graphics Solutions Private Limited Vs. Commercial Tax Officer, Vepery Assessment Circle, Chennai reported in 2017 (99) VST 343. 2.3. Importantly, enhancement petition was also filed by the Revenue, wherein, it was submitted that the exemption on the sales turnover of Rs. 33,50,734/- as representing receipt towards labour charges for printing and digital photography has been erroneously allowed on the basis of the decision of this Court in M/s.Rajeswari Colour Lab (cited supra), which is contrary to the law laid down by the Supreme Court in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rks done which seems to have been allowed in full. As per the judgement of the Hon'ble Apex Court delivered in the case of Pro Lab in CA No. 1145 of 2006, in CA. 1145 of 2006, dated 30.01.2015, the goods component involved in the labour receipt turnover of Rs. 33,50,734/- is exigible to tax under TNVAT Act'06 and which levy was found to have been omitted to be made in the assessment order. As seen from the above referred case laws, it is obvious that the service of manufacturing photography on the photographic paper owned by the appellant and thereafter the photograph is transferred to the customer in the form of finished goods, such activity would not fall under the service tax but under the definition of works contract eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is against the above order of assessment, the present Writ Petition is filed on the premise that works contract with photography is a service contract, on which no taxes could be levied, for there is no sale of material, by placing reliance upon the following judgments: (i) Rainbow Colour Lab & Anr vs The State Of Madhya Pradesh & Others, 2000 (118) STC 9, (ii) The Assistant Sales Tax Officer and others Vs. B.C.Kiame, (1977) 39 STC 237 (SC) (iii) Associated Cement Companies Ltd. Vs. Commissioner of Customs, (2001) 124 STC 59 (iv) Imagic Creative Private Limited Vs. Commissioner of Commercial Taxes and others, (2008) 12 VST 371 (v) C.K.Jidheesh Vs. Union of India, (2006) 144 STC 322 (SC) 5. This Court finds that the above submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f materials involved in the execution of works contract. The same is essentially a question of fact, which, I would think, is appropriate for the Appellate Authority to decide. 7. In view thereof, liberty is granted to the petitioner to file an appeal before the Appellate Authority, if so advised, on the limited ground, of determining the extent of the value of the materials involved in the execution of works contract, within a period of three (3) weeks from the date of receipt of a copy of this order. If any such appeal is filed, the same shall be entertained by the Appellate Authority without reference to limitation subject to complying with all other conditions relating to filing of appeal and orders shall be passed in accordance with l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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