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2015 (11) TMI 231 - AT - Service TaxDemand of service tax - activity of preparation of vegetables, fruits by processing the same & packing in consumer packs for their clients. - whether appellant is liable to discharge service tax liability under the category of "Business Auxiliary Services” or otherwise - Held that:- Appellant is preparing the vegetables by sorting, cleaning, boiling and freezing the same and subsequently packing it in unit packings to be sold by their the brand name. The first appellate authority has held that the activity undertaken by the appellant is not in respect of agriculture are in relation to agriculture. - appellant is undertaking the processing of vegetables on behalf of their client. It is settled law that revenue officers cannot argue against the board's circular. In the case in hand, the first appellate authority as well as the authorised representative of the revenue are arguing against the board's clarification as reproduced hereinabove. We do not have any hesitation to hold that such arguments put forth our view the activity of processing the vegetables by the appellant will be in relation to agriculture hence not liable to service tax under business auxiliary services. - impugned order is unsustainable and liable to be set aside - Decided in favour of assessee.
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