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2017 (3) TMI 1289 - AT - Service TaxBenefit of N/N. 14/2004-ST dated 10.09.2004 and 13/2003-ST dated 20.06.2003 - The department is of the view that, process of de-husking is not an agricultural activity so, no exemption can be granted - Held that: - Board has issued a Circular, No. 143/12/2011-ST dated 26.05.2011, where the benefit was provided to raw cashew, tobacco leaves etc. and the same were considered in relation to agriculture. Needless to mention that in the cashew, kernel is removed and in the instant case, the husk is removed. So both the cases are on the same footing. By considering the Notifications, Circulars and clarifications, we are of the view that de-husking of the paddy is covered in relation to the agricultural activity hence, the service tax is not applicable on such activity - demand set aside. Levy of tax - brokerage and commission - payment to the agents in foreign currency - Held that: - as per Board Circular No. 143/12/2011-ST dated 26.05.2011, it is clarified that the commission agents stationed abroad provide business auxiliary service to promote the export of rice, said business auxiliary service is covered by Notification 13/2003-ST (as amended) because, the word ‘rice’ is mentioned under the explanation to the term ‘agricultural produce’, in the inclusive portion along with other items like cereals, pulses, etc - demand set aside. Clearing and Forwarding services in relation to export of rice - Held that: - the said payment was made under the head of ‘Clearing and Forwarding services’ which includes the ‘freight charges’ - demand upheld. Appeal allowed - decided partly in favor of appellant.
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