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2023 (8) TMI 538 - CESTAT CHANDIGARHClassification of services - Business Auxiliary services or not - weighment charges, collected by the appellants, from their customers, charges constitute the consideration for the Business Auxiliary Service or not - HELD THAT:- The service alleged to have been rendered by the appellants, does not appear to fall under any of the sub causes (i) to (vii) of Business Auxiliary Service. The Revenue did not produce any evidence to show that there is an agreement or an understanding between appellant and their customers for rendering of any service; there is no agreement on any consideration. The nature of service should emanate from the terms of the contract or agreement or understanding mutually agreed upon by the parties. Alternatively, the service, if any, has to fulfill the criterion laid down under the definitions provided by the statute for various services. In the instant case the Revenue fails to establish either of the conditions. It is found that weighment, by the appellants, is done to ensure that the declared quantity of grains is supplied by the agencies; therefore, it cannot be said that the weighment is a service, leave alone Business Auxiliary Service; deduction of weighment charges is not a consideration towards any service rendered. The appellants are deducting certain charges, in addition to weighment charges, towards the allowance for moisture if any. The impugned order cannot be sustained and is liable to be set aside - Appeal allowed.
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