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TMI Blog2023 (9) TMI 456X X X X Extracts X X X X X X X X Extracts X X X X ..... processes involved in each are very different and the impugned activities will be leviable to service tax under the scope of Auctioneer Service, cannot sustain. The demand cannot sustain and requires to be set aside - appeal allowed. - HON BLE MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) HON BLE MR. VASA SESHAGIRI RAO, MEMBER (TECHNICAL) For the Appellant : Shri V. Ravindran, Consultant For the Respondent : Smt. O.M. Reena, Additional Commissioner / A.R. ORDER Order : Per Ms. SULEKHA BEEVI C. S. Brief facts are that the appellant is engaged in conducting sale of goods by tender which according to the Department was Auctioneer services. Show Cause Notice was issued proposing to demand the Service Tax for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iary in relation to sale of agricultural produce with particular reference to Turmeric between the Agriculturists and traders/buyers who are the members of the Society c. The Agriculturists/members display their Agricultural produce ie Turmeric at Society Premises in a Tray on the Notified days. The quantity available for sale will also be noted on the Card which is kept on the sample tray. Numbers are allotted to each tray. After examining the samples, every trader/member will quote the price on their own based on the market conditions. The list of prices so quoted by various traders/members on various samples are put in a separate box till 12 Noon. After the appointed time, the prices so quoted by the Traders are read out in the open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Auction . j. The Society's Business Activities are covered by the following Decided cases of CESTAT Chennai in support of its claim of not treating under Auctioneer Services The nature of Business activities are one and the same mentioned in the following Decided cases 4. It is asserted by the Ld. Consultant that the price is not fixed by the appellant and the goods are not sold without the consent of the farmer. In ordinary service of auction, the price gets fixed by the auctioneer as per bid. Further, there will be a live process wherein the public is called upon to take part in the auction. In the present case only members who are part of the society participate in the sale of the products by way of method which is m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erty Service under Section 65(7a) is reproduced as under :- auction of property includes calling the auction or providing a facility, advertising or illustrating services, pre-auction price estimates, short term storage services, repair or restoration services in relation to auction of property . Taxable service in relation to this service under Section 65(105)(zzzr) read as under :- any service provided or to be provided to any person, by any other person, in relation to auction of property, movable or immovable, tangible or intangible, in any manner, but does not include auction or property under the directions or orders of a court of law or auction by the Government 5.2 The issue that poses for consideration is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... displayed under either of the two tenders according to his convenience. The regular tender system hereafter shall be designated as Type I tender and alternate tender system be designated as Type II tender. 5.3 The department is of the view that such tendering process would fall within the ambit of auctioneer s service. 5.4 The lower appellate authority has, in para 5.4 of the impugned order, compared the definitions of tender and auction put forth by the appellants; inter alia that advertisements or other invitations calling for tender for purchase of goods is not normally an offer but an invitation to treat and that there is no obligation to accept the highest or lowest tender or indeed any tender; on the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bids received till that cut off point will be considered for evaluation. However, in the traditional method of auctioneering, apart from the auction process per se the auctioneer also provides a gamut of other related services like providing a facility, advertising or illustrating the goods in auction, engage in pre-auction estimates, short term storage services, et al. In our view, this is precisely why the Legislature has specifically brought all such activities under a separate Auction of Property Service w.e.f. 1-5-2006. Thus, while both sale by tender and sale by auction may have a common intendment of selling the goods, the modalities and the processes involved in each are very different. 5.6 Viewed in this light, we are unable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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