The weighment activity carried out by the respondent appellant ...

Port Weighbridge Activity: Not a Taxable Business Support Service.

Case Laws     Service Tax

October 25, 2024

The weighment activity carried out by the respondent appellant within the Navlakhi Port is not classifiable under the taxable category of Business Support Service as defined u/s 65(104c) of the Finance Act, 1994 read with Section 65(105)(zzzg). The weighbridge activity is an independent activity and cannot be classified as Business Support Service as the respondent is not supporting anyone's business. The demand raised in the Show Cause Notice does not survive as the category of demand itself is incorrect. The respondent has undertaken a statutory obligation by operating the weighbridge at the port. Such statutory obligations for smooth port operations cannot be taxed, as held in various judgments. The case of Food Corporation of India supports this view, where it was held that the weighment activity is not liable to service tax as it is not related to promotion, marketing, or sale of goods. Therefore, no interference is required in the impugned order of the lower authority, and the Revenue's appeal is dismissed.

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