9911796707
TMI Blog2013 (7) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... es for marketing of agricultural produce and the same was given to the farmers for marketing their produce. The appellant collected a market fee @ 1.05% under Section 73 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963. They have also rented out shops to various traders in the market. During the period 2006-07 to 2010-11 the appellant received market fee amounting to Rs. 58,39,90,519/- and during the period 2006-07 to 2010-11 they received a sum of Rs. 70,50,487/- by way of rent from the traders who hired the shops on rent. The department was of the view that the market fee collected by APMC is liable to service tax under the category of 'Business Support Service' and the rent received is liable to service tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under the category 'Renting of Immovable Property' covered under sub-clause (zzzz) of Clause (105) of Section 65, no penalty shall be imposable for failure to pay the tax under Sections 76 or 77 or 78 of the Finance Act if the amount of service tax along with interest is paid in full within a period of six months from date of enactment of the Finance Bill, 2012. The Finance Bill become Finance Act on 28/05/2012 and, they have discharged the service tax liability along with interest on 27/11/2012 and, therefore, they are eligible for the benefit of the provisions of Section 80 of the Finance Act, 2012 and accordingly no penalty is imposable on them. 4. The learned Additional Commissioner (AR) reiterates the findings given by the adjudicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of consideration for such BSS. 5. As statutory bodies, APMCs provide basic facilities in the market area out of the 'market fee' collected from the licensees, mainly to facilitate the farmers, purchasers and others. APMCs provide a host of services to the licensees in relation to the procurement of agricultural produce, which are 'inputs' in terms of the definition given in section 65(19) of the Finance Act, 1994 itself. To that extent the meaning of 'input' is much wider in scope than the meaning assigned in rule 2(k) of Cenvat Credit Rules, 2004. Therefore, it is clarified that the services provided by the APMC are classifiable as BAS and hence covered by the exemption under Notification 14/2004-ST. 6. However ..... X X X X Extracts X X X X X X X X Extracts X X X X
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