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2016 (2) TMI 27 - AT - Service TaxBusiness Auxiliary Service but not commission agent service - claim of exemption in relation to agriculture produce - acting as an agent for a number of South Indian Tea Estates in the marketing and sale of their tea overseas and are professional tea taster. - it is submitted that, appellant was undertaking the service on behalf of the tea exporters in various ways in respect of export of tea which is an agricultural produce and therefore, the demand of tax is unsustainable. - Exemption Notification no. 13/2003 Held that:- in the whole process of export of tea, they guide exporters suitably in achieving the objectives to fulfil the contractual obligation. The activity is undertaken by the service provider to market 'tea' among foreign buyers as covered under the scope of Business Auxiliary Service. Appellant's activities are not only restricted to sale, but includes host of other activities including assisting in the system of grading and standardization of tea for the purpose of export and also deals with details such as colour, taste, quality and quantity for export of tea and are professional tea taster. They also monitor the shipment of the goods and verify shipment documents, port regulations and other formalities for export of tea. Therefore, we find that the above activities do not fall within the meaning of commission agent. Accordingly, we hold that the appellant's activities are rightly covered under the category of "BAS" other than commission agent. Therefore, the question of appellant claiming tea as agricultural produce, which is applicable for only commission agent and not applicable to the appellant assessee's case. Accordingly, we hold that the demand along with interest is liable to be upheld. - Decided against the assessee.
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