TaxTMI 
TaxTMI 
2023 (10) TMI 173
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....ion' of various commodities for which they receive consideration labelled as commission/service charges. Further, the assessee also provided space for storage of goods and provided post-auction services including collection/distribution of auctioned price. The subsidiary regulations framed under their bylaws, allowed them to provide auction services for a consideration of money. Thus, the said services were covered under 'auctioneer's service' as defined under Sections 65(7a) and 65(105)(zzzr) of the Finance Act, 1994, which prompted the Revenue to issue Show Cause Notice dated 19.10.2012 proposing to demand Service Tax on the above service. 2. It is the further case of the Revenue that the assessee had also collected jewel service....
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....for the assessee, who would contend that: - • The assessee-society undertook various activities like organising and conducting of sale and purchase of all kinds of agricultural produce of its members and public as well, by way of auction sale. • The process included making arrangements at specified place, for the purpose of auction at periodical intervals, facilitating of collection and payments to the sellers and buyers, etc. • Actual auction would be carried out by and between the owners of the agricultural produces and its buyers which are two different entities and the society is a separate entity. • The assessee-society has no role whatsoever in fixing the sale price of the produces t....
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....gricultural Producers v. Commissioner of C.Ex., Salem [Final Order No. 40978 of 2019 dated 30.07.2019 in Service Tax Appeal No. 40435 of 2013 - CESAT, Chennai] iv. Tiruchengode Agricultural Producers Coop. Marketing Society Ltd. v. Commissioner of C.Ex. & S.T., Salem [Final Order Nos. 41731-41732 of 2019 dated 13.12.2019 in Service Tax Appeal No. 41115 of 2013 & ors. - CESTAT, Chennai] v. Rasipuram Agricultural Producers' Coop. Marketing Society Ltd. v. Commissioner of C.Ex., Salem [Final Order Nos. 40739-40740 of 2021 dated 26.02.2021 in Service Tax Appeal No. 40809 of 2013 & anor - CESTAT, Chennai] vi. The Mettupalayam Agricultural Producers Coop.....
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....ry Bench. In the case of M/s. Namakkal Agricultural Producers Coop. Marketing Society (supra), this Bench has observed as under: - "5.1 The main issue which requires consideration in the instant case is as to whether the appellants are rendering "Auctioneer's Service" in respect of marketing and other services rendered for selling agricultural produce of its farmer members? The other issues are demand of service tax under BSS and GTA services. Regarding the taxability of appellant's services under "Auctioneer's Service", a numerous judicial decisions have already gone into the differences between Auction and Tender. The Tribunal in M/s. The Salem Starch & Sago Manufacturers Service Industrial Co-operative Society Ltd. Vs. CCE& ST, ....
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....lties also deserve to be set aside. The impugned order is set aside and the appeal is allowed with consequential relief, if any, as per law." We find that the facts for our consideration in these two appeals are identical. The marketing and other services rendered by the appellant to their farmer members in selling their agricultural produce through tender process would not be coming under "Auctioneer's Service under Section 65 (105)(zzzr) of the Finance Act, 1994. 5.2 On the issue of BSS, the facts indicate that the appellants are taking loans from M/s. Salem District Central Co-operative Finance Bank and utilizing this money in providing jewel loans to their farmer members. Thus, the appellant is borrowing the money from....
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....rent' since: (i) minimum charge of Rs.2.50/- per 100 kgs. is collected as storage charges, (ii) the produce that is stored is an agricultural produce which is exempted specifically under Section 65(102) and (iii) such amounts collected towards storage were very much below the threshold limit, to be treated even as storage and warehousing charges. The threshold limits for Service Tax under the above category, as applicable at the relevant point of time, are as under: - Notification No. With effect from Amount (in Rs.) 4/2007-Service Tax 01.04.2007 8,00,000/- 08/2008-Service Tax 01.04.2008 10,00,000/- 9.2 We even note that M.F. (D.R.) Order No. 1/2002Service Tax dated 01.08.2002, which defines "agricultural produ....