TMI Blog2016 (1) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... o of the no-further-processing requirement contained in the said definition and are of the view that holistic, harmonious and fair construction of the definition of agricultural produce leads to the inescapable conclusion that while ginned cotton would be covered within the scope of "raw vegetable fibres such as cotton" and hence qualify to be called "agricultural produce", ginned cotton if subjected to any further processes like carding etc. would get out of the purview of "agricultural produce". As appellant is a commission agent of ginned cotton, it is eligible for the benefit of Notification No. 13/2003-ST. - Decided in favor of assessee. - Service Tax Appeal No. 97 of 2009 - Final Order No. ST/A/53330/2015-CU(DB) - Dated:- 9-10-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ginning on cotton produced by farmers and therefore ginned cotton gets out of the definition of agricultural produce given in the said notification. 4. We have considered the contentions of both sides. For the sake of convenience, Notification No. 13/2003-ST is reproduced below: In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the business auxiliary services provided by a commission agent in relation to sale or purchase of agricultural produce from the service tax leviable thereon under section 66 of the said Act]. Explanation.- For the purposes of this notification.- (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f agricultural produce by virtue of being produce resulting from cultivation or plantation. It is one of the settled principles of interpretation that as interpretation which would render certain words of the statute redundant or purposeless should be eschewed in favour of an interpretation which avoids such a consequence. Also it is arguable that cotton (with seeds) as plucked from cotton plants can hardly be called cotton fibre in which case cotton fibre would come into existence only after the seeds are ginned away from cotton plucked from cotton plants. Cotton fibre obtained by ginning cotton plucked from cotton plants is nothing but raw cotton fibre because there cannot be rawer form of cotton fibre obtained from cotton-with-seeds ..... X X X X Extracts X X X X X X X X Extracts X X X X
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