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2014 (12) TMI 329

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....y the Commissioner of Central Excise (Appeals), Aurangabad. As both these orders deal with a common issue, they are taken up together for consideration and disposal. 2. In appeal No. ST/714/2010 the appellant, Suvarna Sanjivani Sugarcane Transport Pvt. Ltd. provided sugarcane harvesting and transportation  services to M/s. Sanjivani (T) SSK Ltd. The department was of the view that the said service is classifiable under "Business Auxiliary Service" and the consideration received is liable to Service Tax. Accordingly, a Service Tax demand of Rs. 19,07,585/- was confirmed along with interest thereon and an equivalent amount of penalty under Section 78 apart from penalties under Sections 76 and 77 of the Finance Act, 1994 were also i....

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....are eligible for the benefit of this exemption. It is also argued that the payments received by the appellants towards harvesting and transportation have been given to the labour contractors and the transporters and on the commission retained by them, they have paid the Service Tax. The learned counsel submits that the appellants were acting as a 'pure agent' on behalf of the harvesting contractors and the transport contractors and accordingly they are not liable to pay any Service Tax. 4. The learned AR appearing for the Revenue submits that the contract entered into by the appellants is not for sale or purchase of agricultural produce but for harvesting and transport of sugarcane and, therefore, same would not qualify for benefit un....