TMI Blog2019 (3) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... Products Ltd [2017 (2) TMI 1355 - CESTAT HYDERABAD], where it was held that threshing and drying of the tobacco leaves will not amount to any service falling under the category of ‘Business Auxiliary Services’ - thus, the activity undertaken by the appellant herein of threshing and drying of raw tobacco leaves would not come under category of ‘Business Auxiliary Service’ and is not a taxable activity - demand set aside. Taxability - commission paid to foreign commission agent, under reverse charge mechanism - Held that:- The bench in the case of Kohinoor Foods Ltd [2017 (3) TMI 1289 - CESTAT NEW DELHI] specifically held that the transaction would fall under the purview of notification 13/2003-ST and eligible for exemption and hence no t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the activity undertaken by them is of procuring raw tobacco, threshing and drying, packing and exporting the same which is exempted from payment of service tax under notification 13/2003-ST. The adjudicating authority did not agree with the contentions raised and after following due process of law, confirmed the demands raised along with interest and also imposed penalties. Appeal preferred before the first appellate authority was also rejected. 3. Learned Senior Counsel draws our attention to the facts of the case and submits that issue is no more res integra and is covered by the judgment of the Tribunal in the case of ML Agro Products Ltd [2017 (6) GSTL 94] and Chebrolu Agros Pvt Ltd [2018 (17) GSTL 282] holding that threshing and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ML Agro Products Ltd (supra), Chebrolu Agros Pvt Ltd (supra) and both these orders of the Tribunal have been upheld by the Hon ble Apex Court. In view of this, we have no hesitation to hold that the activity undertaken by the appellant herein of threshing and drying of raw tobacco leaves would not come under category of Business Auxiliary Service and is not a taxable activity. 6. As regards the taxability of the commission paid o foreign commission agent, under reverse charge mechanism, we find that the bench in the case of Olam Agro India Ltd (supra) and Kohinoor Foods Ltd (supra) specifically held that the transaction would fall under the purview of notification 13/2003-ST and eligible for exemption and hence no tax is payable. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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