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1994 Supreme(Ker) 354

K.K. Usha, T.L. Viswanatha Iyer, JJ.
BAVENS
Versus
UNION OF INDIA AND OTHERS.
O.P. Nos. 8318 and 8568 of 1986, 2456 of 1987, 513, 699, 892, 971, 1564, 5536 and 9306 of 1988, 686 and 2125 of 1989 and 10145 of 1992
Decided On: Decided On : 24-11-1994

Headnote:

Photography - Works Contract - [Photography] - [Works Contract] - [Kerala General Sales Tax Act, 1963, Section 2(xxix)(a), 46th Constitutional Amendment] - The court considered whether photographic work constitutes a works contract under the Kerala General Sales Tax Act, 1963, in light of the 46th Constitutional Amendment. The court analyzed the activities of the petitioners and determined that the first category of activity did not constitute a works contract, while the second and third categories did. The court held that the value of the photographic paper in the second and third categories constituted a deemed sale, making it exigible to sales tax. The court set aside the assessment orders and directed the authorities to proceed with the assessment afresh, considering the observations and directions in the judgment as well as the judgment of the Full Bench in Moidoo's case.

Fact of the Case:

The petitioners, engaged in photographic work, challenged the assessment of sales tax on the turnover related to their photographic activities. They contended that their activities did not constitute a works contract and were solely contracts of skill and labor, not exigible to sales tax.

Finding of the Court:

The court found that the first category of the petitioners' activities did not constitute a works contract and was not exigible to sales tax. However, the second and third categories of activities involving the development of exposed film and taking positive prints constituted a works contract, with the value of the photographic paper being deemed as a sale and exigible to sales tax.

Issues: The court considered whether the photographic activities of the petitioners constituted a works contract under the Kerala General Sales Tax Act, 1963, in light of the 46th Constitutional Amendment. The court also addressed the challenge against the assessment orders and demand notices issued to the petitioners.

Ratio Decidendi: The court applied the inclusive definition of works contract under the Kerala General Sales Tax Act, determining that the second and third categories of the petitioners' activities fell within the definition. The court also considered the value of the photographic paper in the activities, holding that it constituted a deemed sale and was exigible to sales tax.

Final Decision: The court partly allowed the original petitions, setting aside the assessment orders and directing the authorities to proceed with the assessment afresh, considering the observations and directions in the judgment as well as the judgment of the Full Bench in Moidoo's case. The court also directed the assessing authorities to consider the exemptions for small-scale industrial units and the rate and point at which tax can be levied in respect of the material involved in the deemed sale.

JUDGMENT

SMT. K. K. USHA, J. - These writ petitions come before us by way of a reference as a learned single Judge found that the contentions raised by the petitioners have far reaching consequences.

2. Photography and its allied activities - a pure work of art outside the purview of works contract ? - is the question raised in these writ petitions. Where photographic cameras started clicking during the regime of Queen Victoria, much impressed by the modern gadget, the Queen expressed an apprehension to Alfred Chalon, the artist, whether photography might ruin his profession - portrait painting. He replied, "Ah, non, Madame, the photography cannot flattere". But the petitioners before us would contend that as much artistic skill and talent is required to be invested in a photograph as in a portrait painted. According to them, photography is a work of art. They quote in their support, observations made by the apex Court in Assistant Sales Tax Officer v. B. C. Kame [1977] 39 STC 237.

3. Photography is the art of fixing an optical image by photochemical means. The word photography means "drawing a picture with light'. The picture is "drawn" by the glass lens in the front of the camera and is recorded on the light sensitive chemicals on the roll of film. A surface which is sensitive to light is the most important component of photography. Even though some 2000 years ago such surfaces were used for decorative purposes in China and the effects of light on some such substances were studied by the Arabs in the Middle Ages, Europe started to take interest in this subject only by about 1550. It was at that time "camera obscura" had been fitted with a lens by Giambattista della Porta. The modern word camera for a photographic apparatus is derived from the Latin "camera obscura" meaning "darkened room". Research was going on as to how the images coming through the lens could be fixed, and this became theoretically possible when J.H. Schulze observed the blackening of silver salts by sunlight in 1727. Further developments were made in this area by the research of K.W. Scheele and William Lewis and thereafter by Thomas Wedgwood. It was in 1835, William H. Fox Talbot who was trained as a scientist at Cambridge University discovered that the blackening could be stopped by washing pictures in brine and then could make positive print out of it. During the same period, J. Nicephore Niepce, a French Officer and Louis Jacques Mande Danguerre were experimenting on this subject in France. In 1837, Daguerre developed a really satisfactory photographic process and it was called the "daguerreotype". The full rights to the above invention were sold to the French Government in the year 1839 by Daguerre and Niepce' son in return for an annuity for life. On August 19th, the French Government published the full working details of the daguerreotype. Coming to know about the above work carried on by Daguerre, Talbot published his "photogenic drawing process" and subsequently explained his technique in full detail to the members of the Royal Society. That was six months before the French Government published the working directions for the Daguerreotype. This, in short, is the early history of photography.

4. During the subsequent years, research continued for a perfect system of fixing the image. Along with that remarkable advances were made in shortening the time of exposure. Thus, from 30 to 60 minutes of the early daguerreotype, it is reduced to a fraction of a second. So also, the size of the apparatus required for taking photographs became reduced as years of research went by. During the early days of commercial photographs, several porters were required to carry the necessary equipment when photographs were to be taken at places away from the studio. During the later years, its weight was reduced to a pack weighing about 40 Ibs to be carried on the back with a tripod which could be used as a walking stick also. Those were the days of wet plates. Cameras




































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