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2014 (3) TMI 1079 - AT - Service TaxLevy of tax - charter hire agreement with Hazira Port Pvt. Ltd. for supply of vessels for undertaking various operations in the port - Supply of Tangible Goods for Use Service or port service - Held that: - In similar circumstances, in the case of Vikram Ispat [2008 (5) TMI 44 - CESTAT MUMBAI], this Tribunal took the view that the activity is one of ‘supply of tangible goods for use’ and not ‘port services'. The purpose of creating a omnibus entry as ‘port services’ was to bring within one service the various activities rendered therein so as to minimize the disputes regarding classification. Therefore, to qualify as a port services, the activity rendered should be a taxable service first. If an activity per se is not a taxable service, it cannot be brought under ‘airport services’ for the purpose of taxation as it would create discrimination between services rendered within the airport area and services rendered outside the airport area - prior to 16-5-2008, the services rendered by the appellant by way of charter of hire of vessels to HPPL would not qualify as ‘port services’. Appeal allowed - decided in favor of appellant.
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