TaxTMI 
TaxTMI 
2018 (2) TMI 1263
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....e boards, wooden flooring, etc. They are registered with the Department for paying central excise duty, where applicable. They have availed service of "Goods Transport Agency" (GTA). During the period April, 2011 to March, 2014, they paid service tax of Rs. 85,97,757/- on reverse change basis on such GTA service. Contending that such tax was paid erroneously by them and claiming exemption under S.No.21 of Notification No.25/12-ST dated 20.06.2012, as amended for transportation of agricultural produce by road, the respondents filed claim for refund of the said amount. The Original Authority after examining the claim rejected the same on the ground that logs/wood/timber transported by the GTA for the appellant is not an agricultural produce a....
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....e Commissioner (Appeals) erred in relying on the decision of the Hon"ble Bombay High Court in the case of SRI Rollers Mills Pvt. Ltd. - 1992 (59) ELT 361 (Bombay). The said decision and also the decision relied on by the Bombay High Court were all dealing with expression "plant". The said decisions dealt with 1989 order for regulation of import into India. The same has no direct relevance to decide the scope of wood logs/timber as "agricultural produce". (d) Submitting that timber and wood logs cannot be considered as "agricultural produce" in terms of Section 65 B of the Finance Act,1994 the ld. AR submitted that the Original Authority is correct in denying the exemption and the impugned order fell in error in reversing such decis....
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....ides and perused the appeal records. 6. The only point of dispute is regarding the eligibility of the respondent to claim exemption from service tax liability for transportation of timber/wooden logs, which are used by them as raw materials in their manufacture. The exemption is claimed under Sl.No.21 of Notification no.25/2012 dated 20.06.2012. The said entry states that services provided by a "goods transport agency; by way of transport in a goods carriage of "agricultural produce" is exempt from service tax. The impugned order examined the scope of the term "agriculture" and "agricultural produce" in terms of Section 65 B. It concluded that eucalyptus/poplar trees for use as raw material is covered by the definition of "agricultural p....
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.... per se. 8. Cutting/logging of trees for timber for further industrial use can more appropriately come under "Forestry Operations". Cultivation relates more to plants, various crops etc. There is a clear distinction between plant/crop and trees. 9. A reference to Indian Accounting Standard 41 dealing with "Agriculture" may throw some light on the current dispute. Harvesting from unmanaged sources (such as ocean fishing and deforestation) is not agricultural activity. 10. United States Internal Revenue Service Code of Federal Regulations (as on 1.4.2012, page 25 stipulates that a tree framer or timber grower may not claim that a highway motor vehicle used in that trade or business is used directly in agricultural production. 11. ....