Classification of Service — The present appeal has been filedagainst the advance Ruling No. KAR/ADRG 87/2019 Dated: 26th sept 2019.

The Authority for Advance ruling examined the case of the respondent company and vide ruling No. KAR/ADRG 87/2019 Dated: 26th Sept 2019 arrived at the conclusion that the relationship between the respondent company and the growers is one of an agent and a principal and since the respondent company, as a commission agent is providing services for sale or purchase of agricultural produce viz. ‘cut flowers’, the same is covered under clause (g) of entry 54 of Notification No 12/2017 CT (R) dt 28.06.2017 and hence is exempted from GST.

We set aside the Advance Ruling No KAR/ADRG 87/2019 dated 26-09-2019 and allow the appeal filed by the Commissioner of Central Tax, Bangalore North Commissionerate. The question on which the advance ruling was sought for is answered as follows:

The commission earned from auctioning of flowers is not eligible for exemption under entry no. 54(g) of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 and entry no. 54(g) of Notification (12/2017) FD 48 CSL 2017 dated 29.06.2017. — International Flower Auction Bangalore Ltd., In Re… [2020] 21 TAXLOK.COM 062 (AAAR-Karnataka)