TMI Blog2019 (2) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... e from the service provider does not at all arise - It is obvious in the given circumstances that the incidence has been born by the appellant who otherwise is the service recipient - refund cannot be rejected on this ground. Denial on the ground that no proof has been tendered by the appellant to show that the impugned services were with respect to agricultural produce - Once there was no evidence on record to prove that the refund of service tax was with respect to such services as were incurred in relation to agricultural produce only, the adjudicating authority had no option but to reject the claim - refund rightly rejected on this ground. Appeal dismissed - decided against appellant. - Service Tax Appeal No.ST/52131/2018-ST [SM] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dmittedly is paying the Service Tax under reverse tax mechanism on various services and those services were incurred for procuring the agricultural produce i.e. the tendu leaves. The labour was involved for plucking the leaves. The services of GTA were procured for dispatching the plucked tendu leaves through. Since all these services relate to the agricultural produce and were not liable to service tax, due to which the impugned refund claim was filed. It is submitted that the said rejection was proposed vide show cause notice dated 16th June, 2016, mainly on 2 grounds:- (i) the refund is hit by the principle of unjust enrichment. It is submitted that the said principle is not applicable to the appellant, as he was discharging the liabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt It is an admitted case that the appellant is involved in manufacture of bidies from Tendu leaves and has been incurring various expenses, not only in relation to the business of manufacture of bidies, till the sale thereof, but also for the procurement of tendu leaves. The impugned refund is admittedly based on the following services:- Sl.No. Head under which service tax deposited Amount of service tax deposited 1. Labour charges Service Tax deposited under Manpower Supply Service Rs.79822/- 2. Loading and unloading service tax deposited under works contract service R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant. 7. Now coming to the second ground i.e. no proof has been tendered by the appellant to show that the impugned services were with respect to agricultural produce; 8. Since the appellant has filed the refund claim on the ground of this unawareness to section 66 D of the Finance Act, 1994, which includes the negative list of the services i.e. the services to which there arises no tax liability to be discharged. The provision reads as follows:- Clause (d) of Section 66 D Negative List of Services (d) services relating to agriculture or agricultural produce by way of- (i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record, except the CA certificate. Though the contention of appellant is that Commissioner (Appeals) has ignored the CA Certificate but the perusal of impugned order falsifies the said line of arguments. In addition, the perusal of certificate makes it clear that the same is with respect to the sale of tendu leaves and that of bidies. 10. The fact remains is the certificate is absolutely silent about the services being incurred for tendu leaves only. Though the ld. Counsel at this stage has requested for an opportunity for producing the requisite additional documents, but it is observed that the original adjudicating authority had rejected the claim on the ground that work contract services and manpower recruitment services were not r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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