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2010 (5) TMI 495 - AT - Service TaxUnder Section 75, 76 and 77 - Regarding royalty - The agreement, IGTPL shall pay to CPT a royalty equivalent to 33.3 per cent of the gross revenue earned by it every month from the operation of the project - CPT received part of revenue earned by IGTPL as consideration for allowing IGTPL to operate the port whereas IGTPL rendered services taxable under port services and paid the tax due on the total revenue - Thus do not find 1/3rd of that revenue received by CPT liable to tax under Port Services at the hands of the appellant - Letting out the port premises for operation by IGTPL does not amount to rendering of port service - If at all any service tax is paid on this amount, the same would be available to IGTPL as Cenvat credit, which can be used for paying service tax on port services rendered by it-Hence, demand not sustainable. Regarding rent - The rent collected from individuals/agencies for allowing them to construct and operate jetties, we find it to be rent and not value for port services rendered - The persons/individuals operating the berth would be required to pay tax on port services if they render such services - Demand raised on CPT under this head is not sustainable. Regarding boat registration fee - As regards boat registration fee, the assessee admitted the liability and honoured the demand. - Demand and penalty set aside.
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