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of <h1>Tribunal: Trust exempt from service tax as facilitator, waiver granted, recovery stayed.</h1> <h3>SHRI MOUNI MAHARAJ SEVABHAVI VISHWASTA SANSTHA BIDRI Versus COMMISSIONER OF CENTRAL EXCISE, KOLHAPUR</h3> SHRI MOUNI MAHARAJ SEVABHAVI VISHWASTA SANSTHA BIDRI Versus COMMISSIONER OF CENTRAL EXCISE, KOLHAPUR - 2013 (31) S.T.R. 353 (Tri. - Mumbai) Issues:Interpretation of service tax liability for services provided by a Trust acting as a facilitator between farmers, transporters, and a sugar factory.Analysis:The appeal and stay application were filed against an Order-in-Original passed by the Commissioner of Central Excise, Kolhapur, regarding service tax demand on a Trust acting as a facilitator for services between farmers, transporters, and a sugar factory. The Trust, consisting of farmers and transporters, facilitated the transportation of sugarcane from farmers' fields to the sugar factory. The department alleged the Trust's activities fell under 'Manpower Recruitment and Supply Services,' demanding a significant service tax amount. The Trust argued it was merely a facilitator with no direct agreement with the sugar factory, and payments were routed to farmers and transporters without any retention. The Tribunal noted the direct agreements between farmers/transporters and the sugar factory, concluding the Trust did not supply manpower and acted solely as a facilitator. The Tribunal granted an unconditional waiver from pre-deposit of the dues and stayed the recovery during the appeal, recognizing the Trust's strong case.In summary, the Tribunal analyzed the service tax liability of a Trust facilitating services between farmers, transporters, and a sugar factory. By examining the agreements and payment mechanisms, the Tribunal determined the Trust did not supply manpower but acted as a facilitator, leading to the grant of a waiver from pre-deposit and a stay on recovery during the appeal process.
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