TaxTMI 
TaxTMI 
2023 (9) TMI 456
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....oposing to demand the Service Tax for the period from 01.10.2006 to 13.09.2011 along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand along with interest and imposed penalty. Aggrieved by such order, the appellant is now before the Tribunal. 2. The Ld. Consultant Shri V. Ravindran submitted that the Department has erroneously confirmed the demand on the allegation that their activity falls within the definition of Auctioneering services. The definition in Section 65(105)(zzzr) of the Finance Act, 1994 was adverted to by the Ld. Consultant which reads as under:- "As per Section 65(105)(zzzr) of Finance Act, 1994 taxable service means : "any service provided or to be provided t....
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.... are read out in the open hall by the Society's Appointed Officer. If the price quoted for sample is agreeable to the Agriculturist, he will intimate the society for sale/delivery of goods. This means the society has to effect the sales/delivery only after getting the agriculturists permission. If the price quoted is not acceptable to the agriculturists, the sale process will not be completed and the Turmeric (agricultural produce) is returned to the Original owner le Agriculturist by the society. d. The process of Price quoting by the buyers of Agricultural produce is in the form of "Tender" and not Auction. e. The Society is not the owner of the Turmeric nor the ownership is transferred to the society for the activities mentioned ....
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....more akin to tender process. 5. The Ld. Consultant submitted that the issue stands covered by the decision of the Tribunal in the case of M/s. Starch Starch and Sago Manufacturing Service Industrial Cooperative Society Ltd. Vs. Commissioner of Central Excise and Service Tax, Salem [2018 (3) TMI 192-CESTAT Chennai]. The Tribunal in the case of M/s. Attur Agricultural Producers Cooperative Marketing Society Ltd. Vs. Commissioner of Central Excise [2019 (8) TMI 262-CESTAT Chennai] and in the case of M/s. Trichengode Agricultural Producers Cooperative Marketing Society Ltd. Vs. Commissioner of Central Excise and Service Tax vide Final Order No. 41731-41732/2019 dated 13.12.2019 also have taken similar view. The Ld. Consultant prayed that the a....
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....es of the appellant would fall within the definition of auction of property service for the period from 1-5-2006 to 31-3-2007. The activity which is the subject matter of dispute is governed by the following terms and conditions between the appellant and the members of the society : "Without prejudice to any of the foregoing provisions or any other clause in these tender terms and conditions, sago serve will also conduct an alternate daily secret tender for sale of sago and starch in the following manner : The samples of the lots put up for tender each day will also display the minimum price indicated in writing by the concerned member. Merchants will bid for these lots as before subject to the conditions that any bid lower than the p....
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....ally held in public, at which prospective purchasers are invited to make successively increasing bids for the property, which is then usually sold to the highest bidder. The bidding process is conducted in such a manner with all intending bidders are aware, immediately, and on real time basis and the bids made by others. That an auction sale is to be distinguished from a sale by fixed bidding when each bidder must specify a fixed amount and has no opportunity to adjust his bid by reference to rival bids. 5.5 We find merits in these contentions of the appellant. An auction is a live process where all prospective bidders are present at the same time and where the system is transparent enough for each bidder to be aware of the bids put forth....