TMI Blog2021 (3) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... of 3% on the amount of loan sanctioned subject to maximum of ₹ 100/- per loan as per the direction given by their finance bank. Appellants are getting loans from their bank namely M/s.Salem District Central Cooperative Bank, Salem and lending to their members on interest. Therefore, this is a case of they lending money to their members and not supporting service of business of some other bank. The facts analyzed in the above case is similar to the facts of the present appeals - there are no hesitation to apply the decision of this Bench which is rendered in one of the assessee s own case - the demand under Auctioneering Service and Business Support Service cannot sustain. GTA Services - appellant has argued that during the relevant period when GTA services was introduced (w.e.f 1.1.2005), the understanding was that when individual truck owners are engaged the activity would not fall under definition of GTA - HELD THAT:- There were several litigations on this issue and the Tribunal in the case of NIRAV INDUSTRIES VERSUS COMMR. OF C. EX. CUS., RAJKOT [ 2009 (3) TMI 592 - CESTAT, AHMEDABAD] held the issue in favour of assessee and it was upheld by Hon'ble Karna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anging for and undertaking of purchase, storing, processing and marketing of the agricultural and other produce or products of its Members to the best advantage and for undertaking distribution of commodities; b) Providing marketing facilities such as auction yards, drying facilities and warehousing and produce pledge loans and thereby facilitating the farmer members to sell their produces at a remunerative price in a transparent manner by auction. c) Dealing in commodities such as cotton, maize, oil seeds and turmeric d) Determining the price of the goods in the auction conducted where the members bring their produces facilitating auctioning of the same by the appellants on the scheduled dates and on receipt of the produces, they are given a receipt with identification lot number for the goods brought into the society for auction; the goods are stacked/stored in the auction yard; e) Sale of goods through secret tender method, before commencement of auction of the said produces, tender farms are given to the traders after making necessary entry in the tender form register for quoting the price of the goods; f) On examining the goods stacked in the open yard as well a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the department to be Business Support Service. The appellant is not supporting any business entity. The confirmation of demand under this head in both the appeals is erroneous as the activity does not fall under the definition of Business Support Service. The very same issue was also considered in the above cited decision of Attur Agricultural Producers Co-op Marketing Society and the Tribunal held that the activity would not fall under Business Support Service. 7. In ST/40809/2013, apart from the demand under Auctioneering Service and Business Support Service, the Show Cause Notice has raised demand under Goods Transport Agency Service also. The same was confirmed by both the authorities below. The period involved in this category of service is from 1.4.2006 to 31.3.2011. He referred to para 11.2 of the Order in Original and submitted that the authorities below have erred in not giving the appellant the benefit of exemptions available under different notifications. Being food items carried for Public Distribution System, the exemption ought to be considered. The appellant was engaged in lifting the ration goods namely, pulses, wheat, rice, sugar etc. from Tamil Nadu Civil S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... people who auction the property. In their case, they are not auctioning any property. They are a Co-operative Marketing Society formed with the objective of facilitating marketing of agricultural produce of their 3 members at an remunerative price through a process of tenders. Therefore there was no auction at all. He draws the attention of the Bench to para-3 of the impugned order which narrates the nature of their activities as follows : (a) the Attur Agricultural Producers Co-operative Marketing Society Ltd., S.No.672 is registered as a Co-operative Society under the Tamilnadu Co-operative Societies Act, 1983 and Rules, 1988 and the Registered Address of the Society is No.55, Kamarajar Road, Pudupettai (p.o.) Attur, Salem (Dt) Pin.636 141, (b) the area of operation of the society is confined to the whole of Attur and Gangavalli taluks, (c) the Co-operative Marketing Societies have been established with the objectives of facilitating the marketing of agricultural produce to its members at a remunerative price, distribution of farm inputs to them, provision of produce pledge loan and taking up processing and value addition to the agricultural produce, wherever possi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service charges from Riots for the value of the produces sold in secret tender auction and from the merchants 1% service charges is collected. xxx xxxx xxx 6. As far as the demand with respect to the Auctioneer s Service is concerned, he would assert that the charge is only on auctioning service and not on tendering service. What they are rendering is facilitation of tenders for sale of the products of their members through sealed tenders. Therefore, the term auctioneer s service does not apply to their activity at all. 7. As far as the demand of service tax under Business Support Service is concerned, he submits that they give gold loans against jewels pledged by their members and collect an appraising charge of 3% on the amount of loan sanctioned subject to maximum of ₹ 100/- per loan as per the direction given by their finance bank. Appellants are getting loans from their bank namely M/s.Salem District Central Cooperative Bank, Salem and lending to their members on interest. Therefore, this is a case of they lending money to their members and not supporting service of business of some other bank. Their finance bank, M/s. Salem District Central Cooperati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13. The appellant was carrying on the work of lifting and delivering the goods to the ration shops under the Public Distribution System. They were carrying goods in the nature of wheat, rice, pulses, sugar etc. An amendment by Notification No. 4/2010 dated 27.2.2010 was brought forth in Notification No. 33/2004 dated 3.12.2004 whereby the transportation of foods grains or pulses was also exempted from levy of service tax. This amendment is by way of substitution. The appellant has also argued that during the relevant period when GTA services was introduced (w.e.f 1.1.2005), the understanding was that when individual truck owners are engaged the activity would not fall under definition of GTA and that there was no liability to pay service tax. He has also relied upon the Budget speech of the then Finance Minister while introducing the Bill wherein it was said, there is no intention to levy service tax on truck owners or truck operators . There were several litigations on this issue and the Tribunal in the case of Lakshmi Narayan Mining Co. Vs. Commissioner of Service Tax, Bangalore 2009 (16) STR 69 (Tri. Bang.) held the issue in favour of assessee and it was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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