2023-VIL-915-CESTAT-AHM-ST
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SERVICE TAX CESTAT Cases

Service Tax - Scope of “Port Service” before the amendment of 1-7-2010 and after the amendment of 1-7-2010 – Service Tax liability on barge income for services rendered in the form of transportation of cargo form ship to shore and vice versa by the Vessel/tug/barge - Whether the barge activity carried out by the Appellant are taxable under port services – HELD - In the definitions of “Port Service” prior to 1-7-2010 the emphasis was on any service rendered by a port or other port or any person authorised by said port or other port. But in the definition of “Port Service” after the amendment of 1-7-2010, the emphasis is on any service rendered within a port or other port. Thus prior to the amendment of 1-7-2010 each and every service rendered within a port or other port cannot be covered by the category of “Port Service” unless it was specially rendered by such Port (a port or other port) or by a person “authorised by such Port or other Port - in respect of the services through Barges rendered by the appellant during the relevant period, they cannot be made liable to pay service tax under the category of ‘port services’ – Further, under the “Port Service”, service provided by a Port, other port or any person authorised by such port is taxable - In the present case department failed to produce any evidence by which it can be proved that the Appellant were authorized by the port for providing services at port - permissions issued by the Port authorities to the appellant cannot be considered as authorization inasmuch as the said permission was issued is basically to enter into the Port area. The appellant has merely arranged the facility on behalf of the clients and importer or exporter and not on behalf of the Port. Therefore, the conclusion of Ld. Commissioner that appellant have been authorised by the port Authorities for carrying lighterage of the cargo from the quay to the mother vessel by using barges and collect charges from customers, the said activity falls within the ambit of “Port Service” is legally not sustainable - the impugned order is set aside and appeal is allowed
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