TaxTMI 
TaxTMI 
TaxTMI 
2016 (2) TMI 27
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....riod ST/40294/2013 7/2012 dt. 30.10.2012 --- 1,35,53,523/- 37,16,942/- + Penalty Oct. 04 to Sep. 09 and Oct. 09 to March 2011 ST/40440/2013 (Deptt. Appeal) 7/2012 dt. 30.10.2012 37,16,942/- Appeal for non-imposition of penalty u/s.76 for the SCN dt. 14.03.2012 ST/41579/2014 15/2014- JC(ST) dt. 20.3.2014 125/2014 (ST) dt. 15.5.2014 26,17,995/- + penalty 26,17,995/- April 2011 to March 2012 2. The brief facts of the cases are that the appellant M/s. Container Tea and Commodities (CT & C for short) is a partnership firm acting as an agent for a number of South Indian Tea Estates in the marketing and sale of their tea overseas and are professional tea taster. Vide orders of the adjudicating authority tax was deman....
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....003. The "Explanation" to this Notification defines "Commission Agent" meaning a person who causes sale or purchase of goods, on behalf of another person for a consideration which is based on the quantum of such sale or purchase. 5. The learned AR for Revenue reiterated the findings of the adjudicating authority and the first appellate authority in respect of the assesee's appeal and also the grounds of appeal in respect of the Revenue appeal and submits that 'agricultural produce' means any produce resulting from cultivation or plantation on which either no further processing is done or such process is done by the cultivator like tending, pruning, cutting, harvesting, drying which does not alter its essential characteristics b....
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....e appropriate service tax along with penalty. 6. After hearing both the sides at length and on perusal of the records, we find that the services of the appellant-assessee include fixing the value of tea, completion of negotiation of the prices between the buyer and the exporter and finalization of the contract between them. We also find that the appellant assists in the system of grading and standardization of the tea for the purpose of export and also deals with details such as colour, taste, quality and quantity for export of tea. They also render their services in fixing the price for tea and after completion of negotiation they actively participate in the finalization of the contract. Subsequently, they keep monitoring the shipment of ....
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.... doubts, it is hereby declared that for the purposes of this sub-clause, "service in relation to promotion or marketing of service provided by the client includes any service provided in relation to promotion or marketing of games of chance, organized, conducted or promoted by the client, in whatever form or by whatever name called, whether or not conducted online, including lottery, lotto, bingo; [Explanation inserted vide Finance Bill, 2008 w.e.f. 16th May, 2008] (iii) any customer care service provided on behalf of the client; or (iv) procurement of goods or services, which are inputs for the client; or Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "inputs" means all....
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....gned to it in clause (f) of Section 2 of the Central Excise Act, 1944". As seen from the above definition of "Business Auxiliary Service" which include host of activities undertaken by the person on behalf of the client. One of the activity is "Commission Agent". In this regard, it is relevant to see that explanation D of Notification 13 of 2003 dated 20.06.2003 as amended by Notification 8 of 2004 dated 09.07.2004, which is reproduced as under:- Notification No: 08/2004, Dated: July 09, 2004 Sub: Sections 66, 93-Amends 12/2001; 13/2003 and 2/2004 In exercise of the powers conferred by Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby di....
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....ruits, nuts and vegetables, spices, copra, sugar cane, jaggery, raw vegetable fibres such as cotton, flax, jute, indigo, unmanufactured tobacco, betel leaves, tendu leaves, rice, coffee and tea but not include manufactured products such as sugar, edible oils, processes food and processed tobacco.' From the above definition, it is abundantly clear that the commission agent is a person who causes sale or purchase of goods on behalf of the principal company for a consideration which is normally governed by an agreement between the principal and the agent. Whereas, in this present case, we find that, as already explained in the above paragraphs, appellant's activities are not only restricted to sale, but includes host of other ....