Agricultural produce exemption covers commission agent services for rice exports where rice is specifically included in the notification.

Commission agent services used for the export and domestic sale of rice were treated as exempt under Notification No. 13/2003-ST because the notification's definition of agricultural produce includes cereals and specifically covers rice. The stated CBIC clarification also confirms that commission agent services for promotion of rice exports fall within the exemption. On that basis, services used by the assessee for rice export were treated as covered by the agricultural produce-related exemption, and refund relief was available.

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Issues: Whether commission agent services availed for export and domestic sale of rice fell within the exemption for services relating to agricultural produce under Notification No. 13/2003-ST.

Analysis: The definition of agricultural produce in the notification includes produce resulting from cultivation or plantation that is marketable after limited processing and expressly includes cereals, with rice specifically mentioned in the inclusive part. The clarification issued by the CBIC also states that commission agent services for promotion of export of rice are covered by the notification because rice is included within agricultural produce. On this basis, the service of commission agents used by the assessee for rice export was treated as exempt.

Conclusion: The exemption applied to the commission agent services, and the assessee was entitled to refund relief.

Ratio Decidendi: Where a notification specifically includes rice within agricultural produce, commission agent services used for its export are covered by the exemption for agricultural produce-related services.

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