2011 (3) TMI 528 - CESTAT, CHENNAI (LB)

Demand - Port service - Whether any provisions other than clause (q) of section (2) of the Major Port Trusts Act, 1963 or any provisions other than clause (4) of section (3) of the Indian Ports Act, 1908 are applicable to interpretation of "port service" defined under section 65(82) of the Finance Act, 1994 - According to law in force prior to 2010 any service provided to any person, by a "port" or any person authorised by the port, in relation to goods or vessels in any manner became taxable with effect from 16-7-2001 enacting Section 65(72)(zn) to the 1994 Act - it was noticed that there was only one amendment by Finance Act, 2003 to include "other port" providing "port services" to be taxable. The consequence of amendment were examined and it was noticed that the service provided by a minor port which was termed by law as "other port" did not bring any difference to the definition of port service while the range and magnitude of service provided by Major Port and Minor Port are as per 1963 Act and 1908 Act - others provisions of these acts are not applicable to service tax.

Whether stevedoring in a major or minor port is a "port service" within the meaning of this expression defined under section 65(82) of the Finance Act, 1994 - If stevedoring service is accepted to be a service not provided by "port" or "other port", the term "port service" defined by 1994 Act shall defeat the purpose of the service tax law - The statutory definition suggesting the service provided "in any manner" serves the purpose of serving the clients of stevedore in relation to goods or services indirectly through stevedores - Decided against the assessee

Whether transportation of cargo after its unloading from a vessel, to a place of storage within the port area held to be services ancillary to stevedoring and whether, ipso facto, these, services can be classified as "port services" under section 65(82) ibid - The services provided in any manner directly or indirectly by a port or other port bring such services to the fold of port services for taxation under the category of port services - Facilities and infrastructure inside a port or other port serve the purpose of a port or other port - Decided against the assessee