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2014 (12) TMI 329 - AT - Service TaxBusiness Auxiliary Service - services rendered to sugar factory in relation to harvesting and transportation services of sugarcane - Benefit under Notification No. 13/2003 ST or 14/2003 ST - penalty u/s 76, 77 & 78 - Held that:- Prima facie we are of the view that the appellant is not eligible for the benefit under Notification No. 13/2003-S.T. as the activity involved herein is harvesting of sugarcane and transportation of sugarcane from the fields to sugar factory. It is not in relation to sale or procurement of sugarcane and, therefore, Notification No. 13/2003-S.T. does not appear to be applicable to the facts of the present case. As regards the benefit under Notification No. 14/2004-S.T., the service has to be rendered in relation to agriculture. In the instant case the service has been rendered to the sugar factory and sugar is a manufactured product. Therefore, it cannot be said that the said service has been rendered to the client in relation to agriculture. Further, there is nothing available on record to show that the appellant was acting as a pure agent on behalf of the clients. The appellant was rendering service to third party namely, sugar factory, and the service was not rendered to the harvesting contractor or the transport contractor. The appellant was rendering the service by engaging harvesting contractors and transport contractors. Therefore, we are of the view that the appellants have not made out a prima facie case for complete waiver of pre-deposit of the dues adjudged. - Partial stay granted.
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