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2024 (1) TMI 1019 - AT - Service TaxLevy of service tax - Auctioneer s Service - Business Support Service - jewel service charges collected by the appellant from its members for appraisal of jewels for the purpose of loan - HELD THAT - This Bench of the Tribunal in the case of M/S. PERUNDURAI AGRICULTURAL PRODUCERS CO-OPERATIVE MARKETING SOCIETY LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, SALEM 2023 (10) TMI 173 - CESTAT CHENNAI , relied upon by the Ld. Advocate, had an occasion to examine an identical issue wherein the demand was raised on the assessee therein, inter alia, under the categories of Auctioneer s Service and Business Support Service . After considering the rival contentions, this Bench has observed that The marketing and other services rendered by the appellant to their farmer members in selling their agricultural produce through tender process would not be coming under Auctioneer s Service under Section 65 (105)(zzzr) of the Finance Act, 1994. The impugned order lacks merit, for which reason the same deserves to be set aside - Appeal allowed.
Issues involved:
The issues in the judgment are: 1. Whether the appellant is liable to pay Service Tax under the category of "Auctioneer's Service"? 2. Whether the demand of Service Tax under the category of "Business Support Service" for the jewel appraisal charges collected by the appellant from its members is justified? Issue 1: Liability for Service Tax under "Auctioneer's Service" The appellant, a Co-operative Society engaged in conducting auctions of various commodities, was under scrutiny for potential liability under the category of "Auctioneer's Service." The demand for Service Tax under this category for the periods from April 2011 to March 2012 and April 2012 to June 2012 was contested. The Order-in-Original confirmed the demands, but the first appellate authority upheld the decision with modifications to the penalties imposed. The appellant challenged this decision before the Tribunal. Issue 2: Justification of Service Tax Demand for Jewel Appraisal Charges Another aspect under consideration was the demand of Service Tax under the category of "Business Support Service" for the jewel appraisal charges collected by the appellant from its members. The Order-in-Appeal upheld this demand, prompting the appellant to appeal the decision before the Tribunal. In the judgment, the Tribunal referred to previous cases where similar issues were addressed. The Tribunal highlighted that the appellant's services did not fall under "Auctioneer's Service" as they conducted auctions through tender, not auction. Additionally, the services provided by the appellant in relation to jewel appraisals for loans were deemed not to constitute "Business Support Service." The Tribunal found the demands under both categories to be unsustainable and set them aside, along with associated interest and penalties. The decision was based on the specific circumstances of the case and the nature of the services provided by the appellant. The Tribunal allowed the appeal, providing consequential benefits as per the law. Separate Judgement: There was no separate judgment delivered by the judges in this case.
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