Case Law Details
Glenworth Estate Limited Vs Commissioner of Central Excise and Service Tax (CESTAT Chennai)
CESTAT Chennai held that black tea classifiable as agricultural product within the definition or meaning under notification no. 13/2003-S.T. dated 20.06.2003 as amended vide notification no. 08/2004-S.T. dated 09.07.2004. Hence, business auxiliary service provided by a commission agent in relation to sale or purchase of black tea is exempt from service tax.
Facts- The appellant is manufacturing ‘Black Tea’ falling under Chapter Sub-Heading 09024060 of the First Schedule to the Central Excise Tariff Act (CETA), 1985. The appellant had engaged foreign agents to help the appellant in promoting / marketing / sale of such manufactured Black Tea in foreign countries, for which they were paid commission. It was held that the same falls under “business auxiliary service” as per Rule 2(i)(d)(iv) of the Service Tax Rules, 1994, by terming the same as import of service in terms of the Taxation of Service (Provided Outside India and Received in India) Rules, 2006 read with Section 66A of the Finance Act, 1994.
The Adjudicating Authority, however, appears to have not accepted the pleadings of the appellant, consequent to which the Order-in-Original came to be passed, thereby confirming the demands proposed in the Show Cause Notice.
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