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2023 (6) TMI 1347 - CESTAT AHMEDABADLevy of service tax - Business Auxiliary Service - receiving commission on the collection of premium of Crop Insurance Service from M/s. Agriculture Insurance Company of India Limited, Ahmedabad - Both the lower authorities have demanded service tax on the ground that service provided by the appellant is not an insurance service. HELD THAT:- From the plain reading of the N/N. 3/2000-ST dated 06.07.2000, it is clear that exemption is not provided to a specific service of insurance but all the services if it is provided in relation to general insurance business provided under National Agricultural Insurance Scheme or the pilot scheme on Seed Crop Insurance or the Farm Income Insurance scheme - In the present case, the appellant have admittedly provided service for collection of premium in relation to the general insurance business provided under the aforesaid government scheme. Therefore, the appellant are clearly eligible for the exemption notification. On careful perusal of the Commissioner (Appeals) order, though he has recorded the claim of notification by the appellant but except for the general findings, no specific finding on the admissibility of notification 3/2000-ST was given. However, on reading and interpretation of the notification 03/2000-ST, it does not give scope for denial of exemption - the appellant are entitled for the exemption notification 3/2000-ST and not liable to pay any service tax on the commission received in relation to general insurance under government’s various schemes. The impugned order is set-aside and the appeal is allowed.
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