CESTAT allowed the appellant's appeal and set aside the impugned...

CESTAT allowed the appellant's appeal and set aside the impugned orders, holding that black tea retains the essential characteristics of an agricultural produce and therefore services rendered by a commission agent in relation to its sale fall within the negative list under Section 66D of the Finance Act, 1994. Consequently, commission paid to foreign commission agents for export of black tea is not exigible to service tax, including under the reverse charge mechanism. Any demand of service tax, interest and penalties consequent to such characterization was quashed. The Tribunal noted prior binding precedents and administrative guidance affirming that client processing which preserves the agrarian character remains agricultural produce.