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2010 (5) TMI 479 - AT - Service TaxPort service – royalty charges - royalty received by the appellant is not a consideration for any port services rendered – Held that: - Port service means any service rendered by a port or other port, or by such port or other port, in any manner in relation to a vessel or goods - assessee pays service tax as demanded, the same will be available to it as cenvat credit, and can be used to meet its liability on services rendered - demand not liable to be sustained Ownership/lease hold rights of the equipment of the appellant shall stand transferred to the licensee from the date of receipt of first installment of the upfront payment. The leasehold rights and ownership of crane leased from M/s. ABG Heavy Industries Ltd., was also passed on to the licensee. The consideration received was accounted in the financial records of CPT as sundry debtors and the value of the assets written off at the written down value of Rs. 7.6 crores. Even if the equipment is held to have been leased to IGTPL and not sold, - no tax can be levied on the consideration as it is not received towards port services rendered by CPT. The assessee did not put up jetties but collected charges for licenses granted to other persons to put up structures on the waters coming within the administrative jurisdiction of CPT. These charges are collected in accordance with Cochin Port(licensing of jetties, slipways and boat pen) Regulations, 1968 - these charges for licenses as not classifiable under port services or taxable under that head.
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