9911796707
TMI Blog2007 (9) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... JAYARAMAN, TECHNICAL MEMBER ORDER [Justice R. K. Abichandani, President.] - 1. The revenue has challenged the order of the Commissioner (Appeals) holding that the respondents, who were auctioneers, engaged in the business of conducting cardamom auction, cannot be categorized as 'clearing and forwarding agent', as held by the adjudicating authority. 2. In both these appeals, the respondents were engaged in the activity of cardamom auctioning which is governed by the terms and conditions of the licence and the marketing rules known as the 'Cardamom (Licensing and Marketing) Rules, 1987'. In the process, the growers or dealers brought to them cardamom which was to be sold by the licenced auctioneer, at a place, on a day and time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to time by the Spices Board for the development of the cardamom industry. It was also provided in sub-rule (2) of rule 3 that no producer of cardamom shall sell his produce otherwise then through a licenced auctioneer or to a licenced dealer. The Board was empowered by the proviso to sub-rule (2) to require producer to sell their produce to the licenced dealers through auctions alone. Rule 4 provided for licencing of persons to carry on business of cardamom as auctioneer or dealer for which application was required to be made in the prescribed Form-A. Provisions for renewal, validity, suspension, cancellation, appeal, etc., were also made with which we are not concerned in the present case. 5.1 The application in Form-A required to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealers. Subject to the statutory regulation and licensing of cardamom business under the Rules, the auction sale would be complete when the auctioneer announces its completion by the fall of the hammer or in any other customary manner as contemplated by section 64(2) of the Sale of Goods Act. While the law regulates the manner in which cardamom will be sold, it does not purport to regulate the price at which it would be sold and the matter is obviously left to the choice of the owner for fixing a reserved or up set price. Though the provision, defining 'auction of property' under section 65(7a) and 65(105)(zzzr) have been inserted with effect from 18-4-2006, they indicate the nature of taxable service which involves the activity of callin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
