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TMI BlogClarification regarding leviability of service tax in respect of Seed Testing with effect from 01.07.2012X X X X Extracts X X X X X X X X Extracts X X X X ..... d Central Excise(All) Principal Chief Commissioners of Central Excise & Service Tax (All) Principal Director Generals of Goods and Service Tax/System/CEI Director General of Audit/Tax Payer Services, Principal Commissioners/ Commissioners of Customs and Central Excise (All) Principal Commissioners/Commissioners of Central Excise and Service Tax (All) Principal Commissioners/Commissioners of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uce including cultivation, harvesting, threshing, plant protection or testing; " 2.1 Term 'agriculture ' has been defined under section 65B clause (3) as under:- (3) "agriculture" means the cultivation of plants and rearing of all life-forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products; 2.2 Term 'agriculture produce ' has been def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ster for testing. If certificate is not received and seeds are not tagged, testing is irrelevant. Therefore, all processes are a part of the composite process and cannot be separated from testing. 2.4 "Agricultural operations" have not been defined in the Chapter V of the Finance Act, 1994 and an inclusive and indicative list of such operations has been given. Thus it has been defined as "Agricul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion No.10/2010-Service Tax]. This notification was rescinded by another notification [No.34/3012-Service Tax, dated 20-06-2012], w.e.f. 01-07-2012, when the Negative List entry came into force. The intent of rescinding the said notification was not to withdraw the above stated exemption but the said exemption was being subsumed elsewhere. The relevant entry in the Negative list as on 01.07.2012 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove, it is clarified that all testing and ancillary activities to testing such as seed certification, technical inspection, technical testing, analysis, tagging of seeds, rendered during testing of seeds, are covered within the meaning of 'testing' as mentioned in sub-clause (i) of clause (d) of section 66D of the Finance Act, 1994. Therefore, such services are not liable to Service Tax under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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