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TMI Blog2018 (10) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 66D of the Finance Act, 1944. The service in question do qualify as Agricultural Extension Services and are covered under negative list as per Section 66D of the Finance Act, 1944 - the appellant is not liable to pay service tax - Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... ients and Seed selection. (vii) How to use insecticides product safely without being unsafe to our body and also our crop product, does and point of purchasing (Shop), per acre dose and per acre water quality. (viii) Field demonstrations including, area measure, water and dose, crop stage, demo plot location (ix) Farmer group meetings (x) Management, commitment and participatory methodologies as a sequel to the feedback from training programmes (xi) Farmer field day on demo plot, observing the results and then conduct field day. (xii) Agriculture Extension Services, which cover all operations in relation to farmer training & application of knowledge for better performance of agriculture operations." 3. An audit was conducted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the appellant are "Agricultural Extension Services" and are covered under negative list as per Section 66D of the Finance Act, 1944. Therefore, they are not liable to pay service tax. 4. Heard the parties and considered the submissions. 5. Considering the fact that the issue came up before this Tribunal in the case of M/s Frontier Agrotech Pvt Limited (supra) wherein the services in question are identical to the services in hand and this Tribunal after examine the issue held as under:- "8. We have gone through the agreement as well as photographs. As per agreement, the appellant is required to provide following services:- "Work & Services: Agriculture Extension Services The Service Provider agrees to disseminate the knowledge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... group meetings (x) Management, commitment and participatory methodologies as a sequel to the feedback from training programmes (xi) Farmer field day on demo plot, observing the results and then conduct field day. (xii) Agriculture Extension Services, which cover all operations in relation to farmer training & application of knowledge for better performance of agriculture operations." 9. We find that the services provided by the appellant in the nature of following:- "General Farmer training; Empirical training; Training for the harvest; and Stewardship. The detail of each activities is as under:- General Farmer Training Under farmer training, the appellant trains farmers in the best agricultural practices resulting in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice best suited to the circumstances. Harvesting Days Various stages are involved in cultivation, such as sowing, tilling, flowering, fruition or pod initiation, pod filling, harvesting etc. The season for harvesting is equally important as the season of sowing. The appellant trains the farmers in the best harvesting practices. Stewardship The appellant also conducts programs wherein it intimates precautions required to be observed by farmers during and after application of pesticides. The appellant also teaches farmers the meaning of product labels and signs, cautions farmers about spurious and duplicate products in market, safe destruction of used pesticide bottles, etc." 10. The appellant has provided above services to that effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome with an evidence that the appellant was engaged in the marketing and promoting the product of their principal while providing Agricultural Extension Service. Therefore, we hold that the appellant is not providing any taxable service but is providing only Agricultural Extension Service. 13. Another ground for confirmation of demand is that the appellant is receiving remuneration in terms of sale by the appellant of the product of their principal. In fact, it is only mode of calculation of remuneration of the service provided by the appellant but the same cannot be termed that the appellant received remuneration by way of marketing and promotion or sale of the product of their principal. For that, the appellant is getting separate commis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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