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2015 (3) TMI 1059 - AT - Service TaxDenial of refund claim - whether service tax was paid on processing of cashew nuts wrongly - refund claim was not registered but a letter was written to them on 4-10-2007 informing them that the refund claim was not filed in proper format and all supporting documents required were not submitted - exemption Notification No. 13/2003-S.T., dated 20-6-2003 - Bar of limitation - Held that:- Conversion of cashew nuts to cashew kernel is not a simple process and it is not covered by any of the processes listed in the notification. The definition even provides the processes which can be undertaken but still remain within the category of agricultural produce and the process of drying the cashew nuts removing/peeling the skin, taking out the oil and thereafter grading them is definitely not covered by the processes described in the definition and therefore cashew kernel clearly goes out of the ‘agricultural produce’ definition. As regards the second claim, it is very clear from the rules for interpretation that classification should not be undertaken on the basis of title but has to be done based on the description for chapter heading/sub-heading. Cashew nuts is a separate heading under Chapter 0801 and below that cashew nuts in shell are covered by 0801 3100 and shelled cashew nuts are covered by 0801 32. This would show that cashew kernels and cashew nuts are treated differently even in the tariff. Therefore I am unable to agree with the submission that cashew kernel is an agricultural produce. Therefore the service tax has been paid correctly. Therefore the benefit of notification cannot be extended and service tax has been paid correctly - Decided against the assessee.
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