Jewel Appraisal Charges Collected by Co-operative Society for Members’ Jewel Loan Not Taxable as Business Support Service: CESTAT

The CESTAT ruled that jewel appraisal charges collected by a co-operative society from its members for jewel loans are not taxable as business support services. The tribunal reasoned that these charges are intrinsically linked to the primary activity of providing jewel loans to its members, which falls under the principle of mutuality and is not a service provided to non-members. The CESTAT held that collecting appraisal charges from members for facilitating loans within the scope of the co-operative society's activities does not constitute a separate business support service liable to tax.