2017 (3) TMI 564

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.... Shri R.K. Mishra, Authorized Representative (DR) - for the Respondent. ORDER The appellant is aggrieved by the order dated 13/08/2010 of Commissioner (Appeals-I), Raipur. The appellants are a registered Cooperative Central Bank created under Chhattisgarh Cooperative Society Act, 1860. They are essentially a banking society and registered with the Department for payment of service tax und....

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....et aside all the penalties imposed on the appellant. 2. The learned Counsel for the appellant submitted that they are a district cooperative bank. They are mandated by the Government to finance the primary cooperative societies in the district in connection with purchase and distribution of fertilizers to the farmers. The arrangement is such that the appellant pays the money for procurement of ....

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....ative societies. The said amount is shown in the name of respective cooperative societies and are part of the disbursement accounted against them. In other words the freight paid to the transporter is on behalf of various primary societies who are actually the consignees of the cargo. The consignor is Markfed on whose advice the cargo is transported. The appellant is a banker who is financing this....

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....annot be put to the liability in terms of the above said rule for payment of service tax. In the present case, both consignor and consignee has been clearly identified. No verification with their records or their liability has been done by the Revenue. The appellants who are financing the fertilizer alongwith its transport to the consignee is actually acting on behalf of various primary cooperativ....