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2015 (12) TMI 1599 - AT - Service TaxDemand - port services - storage and warehousing services - Held that: - Ports are statutorily required to handle goods and vessels; to that extent they provide a safe harbour for ships with berths for holding them fast. These are generally presented as pilotage and berth hire. In relation to goods, ports provide space for storage - either in the open or in covered godowns - and ports collect wharfage. Handling of cargo is not a part of the core activities of the port. Even if the port authority in a major port does handle it, it is performed through the Dock Labour Board which is an official stevedore - It would, therefore, appear that ports licence entities to interact with them and with others in relation to vessels and cargo, steamer agents, stevedores, ship chandlers, etc., which are not in the nature of authorisation to perform such activities that the port otherwise undertakes. Storage and warehousing service - Held that: - the definition of ‘storage and warehousing’ in Section 65(102) of Finance Act, 1994, we find, that it specifically excludes service in relation to agriculture produce. On this count, too, the demand of tax on the service rendered by the appellant is untenable - The appellant handles cargo which involves loading, unloading and transporting. Moreover, such handlers are often required to provide space for aggregation and security of cargo till they are ready to be moved to the vessels carrying these. The ‘storage and warehousing’ that is intended to be taxed is a specialised field that has for long held a vital position in commodity logistics. Such warehousekeepers are recognised in law as transit custodians with enacted responsibility and rights over the goods. Even to the extent of according the right of transfer of ownership through the transfer of warehouse receipt. The storage space provided by the appellant does not fall within that category but is one of renting of space. The demand of tax, therefore, is not sustainable. Appeal allowed.
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