COMMISSIONER OF CENTRAL EXCISE Vs. SALEM STARCH & MANUFACTURERS' SERVICE INDUSTRIAL CO-OPERATIVE SOCIETY LTD

JUDGEMENT

(1.) The Revenue is on appeal as against the order of the Customs, Excise and Service Tax Appellate Tribunal, Principal Bench at New Delhi. The above appeal was admitted on the following substantial questions of law:--

(2.) It is seen from the facts narrated that the respondent herein is a registered Co-operative Society formed with the object of improvement of tapioca cultivation and tapioca sago and starch industry and of the economic condition of tapioca cultivators and sago and starch manufacturers in the area of operation mentioned. Since the issue raised in this appeal related to the chargeability of the transactions to service tax provisions, the assessee initially raised question regarding maintainability of the appeal before this Court. However, learned counsel for the assessee pointed out that since the issue raised herein involves factual aspects, they have no objection for hearing this matter.

(3.) The society obtained registration under the category of storage and warehousing under the service tax provisions and has been paying service tax there on from 16.8.2002. It is seen from the facts herein that based on the intelligence gathered on the nature of services rendered by the assessee as falling under the category of 'clearing and forwarding agents', not under the category of 'storage and warehousing', the officials of the Preventive Group visited the office of the assessee on 20.3.2003. As per the letter given on 6.5.2003, the activities undertaken by the assessee were reported as follows:--