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2017 (9) TMI 163 - AT - Service TaxBusiness Auxiliary services - N/N. 14/2004-ST dated 10/09/2004 - whether the services of harvesting and transportation of sugarcane and consideration received there against as Sanugraha Anudan (commission) is taxable under Business Auxiliary Service and whether the exemption Notification No.14/2004-ST dated 10/09/2004 exempts the said service? Held that: - notification says that the commission in relation to sale and purchase of agricultural produce are exempted from service tax - In the present case, the services of harvesting and transportation is in relation to supply of sugarcane, which is agricultural produce. As per the explanation the agricultural produce should not undergo the alter of its essential characteristics. The sugarcane which was harvested is supplied to sugar factory without bringing any alteration in its essential characteristics. Therefore, the services provided by the appellant is squarely covered by this notification - It is also observed that even the N/N.14/2004-ST dated 10/09/2004 also exempts the Business Auxiliary Services provided in relation to agricultural produce. The service provided by the appellant, i.e., harvesting and transportation of sugarcane for supply to sugarcane factory is exempted - appeal allowed - decided in favor of appellant.
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