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2017 (5) TMI 1465 - CESTAT NEW DELHILiability of service tax - “market fees” or “mandi shulk” - lease amount - appellant charged “market fee” for issuing licence to traders, agents, factory/cold storage owners or other buyers of other agricultural produce. The appellants also let out land and shops to traders and collected allotment fee/lease amount for such land/shop - Held that: - with the introduction of Negative List Regime of Taxation w.e.f. 1.7.2012, the appellants‟ services were excluded from the tax liability - the appellants, being an Agricultural Produce Marketing Committee, is excluded from the tax liability - Services relating to agricultural produce by way of storage or warehousing are in the negative list. In respect of shops, premises, buildings, etc. rented/leased out for any other commercial purpose other than with reference to agricultural produce (like bank, general shop etc.), the same shall not be covered by the negative list and the appellants shall be liable to service tax. The appellants are liable to pay service tax under the category of “renting of immovable property service” for the period upto 30.06.2012 - For the period from 1.7.2012 (Negative List Regime), the appellants are not liable to pay service tax under the said tax entry in respect of shed/shop/premises leased out to the traders/others for storage of agricultural produce in the marketing area. The Negative List will not cover the activities of renting of immovable property for other than agricultural produce - The demands, wherever raised invoking extended period, shall be restricted to the normal period - penalties set aside. The threshold exemption available to the small scale service provider in terms of the applicable notifications during the relevant years, shall be extended to the appellant on verification of their turnover. Appeal allowed - decided partly in favor of appellant.
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