2011 (1) TMI 57

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....seas, under the head 'Business Auxiliary Services'. 2. It had been further stated that the petitioner is a small family run partnership firm. The petitioner firm received 2.5% to 3% commission on sales. As such, the petitioner would fall within the category of 'Commission Agent', under the head 'Business Auxiliary Services'. The Commission Agents, in general, were exempt from the payment of service tax, under the head of 'Business Auxiliary Services', during the period from July, 2003 to July, 2004, vide notification No.13/2003. The said notification had been amended, on 9.7.2004, vide notification No.8/2004, whereby the exemption was restricted to the commission received by the Commission Agent, in relation to the sale or purchase of 'A....

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....uoted the definition found in the notification No.8/2004, stating that it specified 'unmanufactured tea' as in the case of unmanufactured tobacco. Therefore, it was insisted that the petitioner should give the details of the commission received by it, from 1.7.2003, till the date of the said communication. 5. The main contention of the learned senior counsel appearing for the petitioner is that the respondent does not have the authority or the power to levy the service tax on the commission received by the petitioner in connection with the export of 'Agricultural Produce', such as tea. She had also submitted that the respondent had not passed a speaking order on the representation made by the petitioner, dated 17.8.2009. The respondent a....

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.... who were engaged in the activity of sale or purchase of 'Agricultural Produce'. The definition of 'Agricultural Produce' included tea. However, it had been stated that it does not include manufactured product, such as sugar, edible oils, processed food and processed tobacco. 7. The contention of the petitioner is that the product tea is exempted from the payment of service tax, as it is not manufactured, cannot be accepted, as the tea, which the petitioner deals in is a manufactured product, which is subjected to a number of processes in the tea factories. Since, the petitioner provides the services in respect of black tea, which is a fully manufactured product, the exemption from service tax would not be applicable to the petitioner. ....