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2014 (4) TMI 445 - AT - Service TaxCargo Handling Agent / Port Service - scope of the term "authorized by the port" - reference to Gujarat Maritime Board (GMB) - principle of pari-materia statute - interpretation of law - non payment of service tax on lighterage and local transportation within the port - stevedoring, unloading and loading charges - appellant contended that amendment made by Finance Act, 2010 clearly brings out the legislative intent of not taxing services other than those provided by port or a person authorized by the port prior to 01.07.2010. - Held that:- The law is laid down by the Apex Court in the case of Aphali Pharmaceuticals vs. State of Maharashtra [1989 (9) TMI 212 - SUPREME COURT OF INDIA] that a statute has to be interpreted contextually and that it is unjust to decide or respond as to any particular part of law without examining the whole, to interpret and in such a way as to harmonize laws with laws, is the best mode of interpretation. The expression authorized by the port has a specific connotation under the Major Port Trusts Act, 1963 (which governs all Major Ports) as also under GMB Act, 1980, Maharashtra Maritime Board Act, Tamilnadu Maritime Board Act, and other similar Maritime Board Acts issued by various State Governments governing Minor Ports. Section 42(3) of the Major Port Trust Act, 1963 and Section 32(3) of the GMB Act, 1980 provide for an authorization from the Port for performing specified services. The said provisions further provide that the person authorized by the port shall charge or recover for the service rendered by them in accordance with the scale of rates which have been framed. There is no infirmity in referring to provisions of the GMB Act while deciphering the meaning of the expression authorized by the portused in the definition of port service under the Finance Act, 1994. It is an undisputed position that the Ports Act specifically provides for services which a Port would render and also provides for grant of an authorization in favour of a third person for rendering services. It is these services which the Finance Act seeks to tax and therefore the two statutes are with respect to the same person / thing or class of person / things and are thus pari-materia statutes. The license issued to the appellant for undertaking stevedoring operations as also lighterage has been issued under Rule 6(1)(kk) of the Indian Ports Act which deals with the power to make regulations for licensing purposes which is distinct from an authorization under Section 32(3). Decision in the case of VELJI P. & SONS (AGENCIES) P. LTD [2007 (8) TMI 35 - CESTAT, AHMEDABAD] followed. - appellants were not authorized by the port for providing such services - Decided in favor of assessee. Extended period of limitation - Held that:- a substantial portion of the demand against them is barred by limitation as the dispute in hand is one of interpretation and high judicial forums have at different time taken a different view. The Apex Court has in the case of Jaiprakash Industries Ltd. Vs. CCE [2002 (11) TMI 92 - SUPREME COURT OF INDIA] held that in such cases where different statutory authorities have taken divergent view extended period cannot be invoked. - Demand set aside - Decided in favor of assessee.
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