When Processing Remains Agriculture

In a significant reaffirmation of settled jurisprudence, the CESTAT held that threshing, drying, and packing of tobacco leaves do not alter the essential character of the produce and remain agricultural operations. 

Consequently, such activities cannot be taxed under Business Auxiliary Services. 

The Tribunal emphasized judicial discipline, holding that binding precedent, especially when affirmed by the Supreme Court, must be followed in the absence of distinguishing facts.