An Abelian group has the central series , since . In any central series, each factor is a subgroup of a center and hence Abelian. A finite normal series with Abelian factors makes the group soluble: inductively, if is soluble and is Abelian, then , and successive derived groups eventually vanish. Hence every nilpotent group is soluble.
The group has the normal series with cyclic factors of orders three and two, so it is soluble. Its center is trivial, since a permutation commuting with both and must fix all three letters. Every nontrivial nilpotent group has nontrivial center: its first nonidentity central-series term is contained in . Consequently is soluble but not nilpotent.
For a finite p-group, use induction on its order. The identity group is the base case. A nontrivial has nontrivial , so has smaller order, still a power of . By induction it has a central series. Lift that series to subgroups of and prepend . The first factor is central by definition of , and centrality of every lifted factor is exactly centrality of the corresponding quotient factor. This gives a central series for . This proves finite p-groups are nilpotent:

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