TaxTMI 
TaxTMI 
2019 (8) TMI 262
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....ce" and "Business Support Service" which are chargeable to service tax but have not discharged service tax liability. Accordingly, a show cause notice dt. 19.10.2011 has been issued to the appellants invoking the extended period of limitation covering the period 1.5.2006 to 31.3.2011 demanding a service tax of Rs. 68,91,194 (including Educational Cess and Secondary Higher Education Cess) towards Auctioneers' Service and a service tax of Rs. 1,22,512/- (including Educational Cess and Secondary and Higher Education Cess) towards Business Support Service along with interest under Section 75 of the Finance Act, 1994. It has further been proposed to impose penalties upon them under Section 76, 77 & 78 of the Finance Act, 1994 and collect late fe....
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....roduce of their members at an remunerative price through a process of tenders. Therefore there was no auction at all. He draws the attention of the Bench to para-3 of the impugned order which narrates the nature of their activities as follows : (a) the Attur Agricultural Producers Co-operative Marketing Society Ltd., S.No.672 is registered as a Co-operative Society under the Tamilnadu Co-operative Societies Act, 1983 and Rules, 1988 and the Registered Address of the Society is No.55, Kamarajar Road, Pudupettai (p.o.) Attur, Salem (Dt) Pin.636 141, b) the area of operation of the society is confined to the whole of Attur and Gangavalli taluks, c) the Co-operative Marketing Societies have been established with the objectives of facil....
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....cked in the open yard as well as in the godown traders mention their name, address and quote the price for the goods lot wise in the tender form and then drop the completed tender form in the tender box, j) the tender box is opened in the evening by the marketing manager of the society in the presence of traders and secretary and after opening the tender box the traders who quoted the highest price for a particular lot is declared as highest bidder and the same is displayed in the notice board lot wise for the convenience of the farmers, k) after noticing the price of the goods declared in the notice board, if the farmer is satisfied, he may sell the goods, otherwise he may store the goods for the next auction; l) after getting con....
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....property. 6. As far as the demand with respect to the Auctioneer's Service is concerned, he would assert that the charge is only on auctioning service and not on tendering service. What they are rendering is facilitation of tenders for sale of the products of their members through sealed tenders. Therefore, the term "auctioneer's service" does not apply to their activity at all. 7. As far as the demand of service tax under "Business Support Service" is concerned, he submits that they give gold loans against jewels pledged by their members and collect an appraising charge of 3% on the amount of loan sanctioned subject to maximum of Rs. 100/- per loan as per the direction given by their finance bank. Appellants are getting loans from their....
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....o-op Society Ltd. reported in 2018 (3) TMI 192 - CESTAT CHENNAI. 9. Ld. D.R reiterates the findings of the impugned order and argues that the same needs to be upheld and appeal may be rejected. 10. We have considered the arguments on both sides and perused the records. As far as Auctioneers' Service is concerned, it can be levied on the service of auctioning. Undisputedly, in the present case, as recorded in the impugned order itself, the appellants are selling goods through tender and NOT through auctions. The Auctioneer's service does not cover the service of tender. As far as the demand under BSS is concerned, evidently, the cooperative society is engaged in the business of lending money to their members and have been collecting some ....