TaxTMI 
TaxTMI 
2022 (2) TMI 61
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....roducers Co-operative Marketing Society Ltd. are engaged in conducting of auction of goods and property for a consideration. Revenue opined that this constitutes a taxable service under "Auctioneers' Service" and the appellants are required to pay the service tax to the tune of Rs. 10,24,322/-. Show cause notice dt. 11.10.2011 was issued and it was confirmed vide OIO dated 05.06.2012 passed by Additional Commissioner, Salem. On appeal, filed by the appellant Learned Commissioner (Appeals) passed the impugned order. 3. Ld. Consultant Shri M. Muthukumar appearing on behalf of the appellant submits that they are a registered cooperative society and their principle activities comprise of arranging for and undertaking of purchase, storage, purc....
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....pra, sugar cane, jaggary, raw material fibres such as cotton, flax, jute etc. indigo, unmanufactured tobacco, rice, coffee and tea, but does not include manufactured products such as sugar, edible oils, processed foods, processed tobacco. He submits that prior to 01.07.2012 taxable services excluded the services provided in relation to cultivation of agriculture, services relating to agricultural produce, services relating to selling of agricultural produce or services provided by Agricultural Product Marketing Committee and status quo is maintained even after the introduction of negative list regime wherein clause (d) of Section 66D mentions services relating to agriculture or agricultural produce. He also relies upon Board's Circular No.1....
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....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 charge towards appraising the value of the pledged jewels in the process. This is not service rendered to anybody at all. It is true that, in turn, the appellant has been borrowing money from their bank but it does not mean that the appellant is supporting service of the bank. They are borrowing money from the bank on their account and in turn lend....