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2016 (1) TMI 562 - AT - Service TaxCommission agent for ginned cotton - Scope of exemption - agricultural produce or not - Notification No. 13/2003-ST dated 20.06.2003 - business auxiliary services - Held that:- Cotton fibre obtained by ginning cotton plucked from cotton plants is nothing but raw cotton fibre because there cannot be "rawer" form of cotton fibre obtained from "cotton-with-seeds" plucked from cotton plants. We also take note of the exclusionary part of the definition of agricultural produce which states that it "does not include manufactured products such as sugar, edible oils, processed food and processed tobacco" as also of the no-further-processing requirement contained in the said definition and are of the view that holistic, harmonious and fair construction of the definition of agricultural produce leads to the inescapable conclusion that while ginned cotton would be covered within the scope of "raw vegetable fibres such as cotton" and hence qualify to be called "agricultural produce", ginned cotton if subjected to any further processes like carding etc. would get out of the purview of "agricultural produce". As appellant is a commission agent of ginned cotton, it is eligible for the benefit of Notification No. 13/2003-ST. - Decided in favor of assessee.
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