TaxTMI 
TaxTMI 
2016 (2) TMI 27
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....No. & Date O/A No. & Date Duty (Rs.) Period 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 ar....
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....e submits that the service of a commission agent were wholly exempt from the levy of service tax vide Notification No. 13/2003-ST dated 20.6.2003. 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 o....
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.... is well covered under the category of Business Auxiliary Service for the amount received from their clients and hence they are liable to pay the 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 ....
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....ale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or Explanation - For the removal of 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....
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....s; or (iv) undertakes any activities relating to such sale or purchase of such goods or services (b) "Excisable Goods" has the meaning assigned to it in clause (c) of Section 2 of the Central Excise Act, 1944. (c) "Manufacture" has the meaning assigned 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....
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....means any produce resulting from cultivation or plantation, on which either no further processing is done or such processing is done by the cultivator like tending, pruning, cutting, harvesting, drying which does not alter its essential characteristics but makes it only marketable and includes all cereals, pulses, fruits, 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 o....