FCI’s Goods Weighment Not Considered “Business Auxiliary Service” by CESTAT

Food Corporation of India Vs Commissioner of Central Excise and Service Tax (CESTAT Chandigarh) Introduction: The case between Food Corporation of India (FCI) and the Commissioner of Central Excise and Service Tax before CESTAT Chandigarh centers on the classification of weighment of grains as a “Business Auxiliary Service.” Revenue authorities sought to recover service tax on weighment charges collected by FCI, considering them as a service rendered. FCI contended that the weighment was not a service and appealed against the lower authority’s decision confirming the demand. Analysis...