Weigh bridge Facility Not a Business Support Service: CESTAT Quashes Service Tax Demand [Read Order]
Bench noted that providing a weigh bridge does not amount to providing business support services
![Weigh bridge Facility Not a Business Support Service: CESTAT Quashes Service Tax Demand [Read Order]](https://images.taxscan.in/h-upload/2025/06/09/2041771-service-tax-weigh-bridge-facility-cestat-delhi-taxscan.webp "Weigh bridge Facility Not a Business Support Service: CESTAT Quashes Service Tax Demand [Read Order]")
The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in a recent decision held that providing a weigh bridge does not amount to providing business support services and quashed the service tax demand. In this case, the assessee, M/s. Balajee Loha Pvt. Ltd. had appealed against the order passed by the Commissioner (Appeals), which upheld the order passed...
The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in a recent decision held that providing a weigh bridge does not amount to providing business support services and quashed the service tax demand.
In this case, the assessee, M/s. Balajee Loha Pvt. Ltd. had appealed against the order passed by the Commissioner (Appeals), which upheld the order passed by the Assistant Commissioner. In the order in the original, the Assistant Commissioner had confirmed a demand of service tax of Rs. 2,21,045 and Rs. 1,75,155 on the appellant under the proviso to section 73(1) of the Finance Act, 1994, along with interest and penalties.
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The appellant is registered with the service tax department and offers taxable services such as insurance, transportation, and weigh bridge. The department found that the appellant had earned ‘other income’ from delayed payment charges, which they considered taxable as a declared service under Section 66E(e) of the Finance Act from July 1, 2012.
A show cause notice (SCN) dated 30-8-2016 was issued to the assessee by invoking the extended period of limitation under the proviso to section 73(1) of the Finance Act, demanding service tax with interest and proposing the imposition of penalties.
The appellant provided weigh bridge and collected amounts for it. The department assessed this amount for service tax in connection with business support services.
The assessee, by relying on the decision of CCE Rajkot vs Shivam Marine ServicesCCE Rajkot vs Shivam Marine Services, contended that providing a weigh bridge cannot be treated as a business support service.
The department’s counsel strongly relied on the impugned order.
The bench, by going through the facts of Shivam Marine, concluded that providing a weigh bridge does not amount to providing business support services.
Delhi CESTAT, comprising Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member), allowed the assessee’s appeal and set aside the impugned order.
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