ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 08.09.2025
CESTAT Chandigarh- Service Tax Refund Granted for Rice Export Under Agricultural Produce Exemptionโ โ โ โ โ
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chandigarh, has delivered a judgment in favor of M/s Bharat Industrial Enterprises Ltd., Taraori, Karnal, Haryana, in the matter of Service Tax Appeal No. โ 377 of 2011. โ This case highlights the interpretation of the term “agricultural produce” and its implications for service tax exemptions under Notification No. โ 13/2003-ST.
Background of the Case โ
M/s Bharat Industrial Enterprises Ltd. is engaged in the cultivation of paddy and the sale/export of rice obtained by de-husking paddy. โ During the financial year 2007-08, the company paid service tax under the Reverse Charge Mechanism for services availed from commission agents for export and domestic sales. Subsequently, they filed a refund claim of Rs. โ 13,63,497/- on the grounds that the commission services were exempt from service tax under Notification No. โ 13/2003-ST dated 20.06.2003. โ
While the Original Authority granted the refund, the Commissioner of Central Excise, Panchkula, disallowed the claim through an Order-in-Revision dated 30.11.2010, directing the appellants to deposit the refunded amount along with interest at 13% per annum. โ This led to the present appeal before the CESTAT.
Source: CESTAT Chandigarh
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