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Issues involved: Interpretation of Notification No. 13/2003-S.T. for exemption from Service Tax on commissions received for sale of agricultural produce, specifically cashew nuts.
Summary: Issue 1: Applicability of Service Tax on commissions received for sale of cashew nuts The appellants, engaged in getting buyers for cashew nut exporters, were required to pre-deposit Service Tax, Education Cess, interest u/s 75, and penalties u/s 76, 77, and 78. Revenue claimed they were liable for Service Tax under 'Business Auxiliary Service'. The appellant argued for exemption u/s Notification No. 13/2003-S.T., citing the amendment exempting commission agents in sale or purchase of agricultural produce. Revenue contended that cashew nuts were not covered under this Notification. Details for Issue 1: The definition of 'Agricultural Produce' includes nuts and vegetables, which prima facie covers cashew nuts. The Tribunal found that the appellants had a strong case on merits, ordering a complete waiver of the pre-deposit and prohibiting coercive measures until the appeal is decided. This order is valid beyond 180 days as per the Supreme Court's decision in Kumar Cotton Mills case. This judgment highlights the importance of interpreting legal definitions and exemptions accurately to determine the applicability of Service Tax on specific transactions involving agricultural produce like cashew nuts.
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