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2019 (3) TMI 45 - CESTAT HYDERABADBusiness Auxiliary services or not - Non-payment of service tax - service tax on the commission paid by them to a commission agent situated abroad - reverse charge mechanism - It is the case of the revenue in the audit that the appellant having paid an amount to a person situated abroad, under reverse charge mechanism is liable to pay service tax - benefit of N/N. 13/2003-ST - whether the activity of threshing and drying undertaken by the appellant of raw tobacco procured and purchased will amount to an activity falling under category of ‘Business Auxiliary Service’ or otherwise? Held that:- This very issue has been decided by this bench in the case of ML Agro Products Ltd [2017 (2) TMI 1355 - CESTAT HYDERABAD], where it was held that threshing and drying of the tobacco leaves will not amount to any service falling under the category of ‘Business Auxiliary Services’ - thus, the activity undertaken by the appellant herein of threshing and drying of raw tobacco leaves would not come under category of ‘Business Auxiliary Service’ and is not a taxable activity - demand set aside. Taxability - commission paid to foreign commission agent, under reverse charge mechanism - Held that:- The bench in the case of Kohinoor Foods Ltd [2017 (3) TMI 1289 - CESTAT NEW DELHI] specifically held that the transaction would fall under the purview of notification 13/2003-ST and eligible for exemption and hence no tax is payable - demand set aside. Appeal allowed - decided in favor of appellant.
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