White Cliffs Hair Studio Private Ltd Vs Additional Commissioner (Madras High Court)
No Service Tax to be levied on fitment and preparation of scalp to make Wig
The Hon’ble High Court of Madras in the matter of M/s White Cliffs Hair Studio Private Ltd v. Additional Commissioner, Office of the Principal Commissioner of CGST and Central Excise, Chennai [WP.No.12198 of 2019 dated July 08, 2018] set aside the order passed by the Revenue Department and held that no Service Tax to be levied on incidental services including fitment of the wig and the preparation of the scalp to receive the wig.
Facts:
M/s White Cliffs Hair Studio Private Ltd (“the Petitioner”) has engaged in Non-surgical Hair Replacement for persons who have suffered hair loss and for the purpose, the manufactured wig is fitted by measuring the head, then test the skin for endurance and an option is given to colour the wig if desired. Accordingly, the head is prepared by shaving and cleaning, and oil is applied to the scalp to rid it of dryness. The wig is thereafter pasted onto the head with medical tape and glue.
On the aforesaid facts, the legal issue that arises is whether the intrinsic or dominant nature of the transaction is one of sale of a wig or rendition of service.
The Revenue Department (“the Respondent”) vide Order-In-Original (“the OIO”) concludes that the above said services attract Service Tax as the activity would fall squarely within the definition of service under Section 65B(44) of the Finance Act, 1994 (“the Finance Act”) effective from July 01, 2012. The definition of service thereunder is an inclusive one, meaning any activity carried out by a person for another for consideration, with certain exceptions. Being Aggrieved by the OIO, present writ petition has been filed.
Issue:
