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2015 (9) TMI 941 - AT - Service TaxDemand of service tax - steamer agent services - Port services - Held that:- Board has issued a circular on 26-2-2010 vide DOF No. 334/1/2010/TRU wherein it was clarified that the definition of “Other Port Services” are being amended to provide that all services provided within the port would fall under port service and authorization from port authority could not be a pre-condition for taxing the services. In the absence of any evidence to show that appellant had been authorized to provide the port service and in terms of the authorization, activities were undertaken by the appellant, and also in view of the specific provision in the definition relating to authorization, we consider that the impugned order taking a view that levy is sustainable cannot be upheld. We also find that the appellants’ operation in Bhavnagar which is limited to hiring a barge to the customer cannot be levied to tax under Port Service. Therefore, demand for Service Tax under the category of Port Service also cannot be sustained. Appellant merely identified and arranged services of licenses steamer agents Custom house agents, etc., for ship owners based in the United States from 29-3-2006 and were remitting the Service Tax treating the service rendered by them as business auxiliary service. This is because the foreign ship owners were reimbursing the expenses incurred by the appellants for identification and arranging the services and were also giving commission to the appellants on which the appellants paid Service Tax under the category of business auxiliary service. We agree with the submission that unless the appellant was actually rendering steamer agent service, there was no question of levying Service Tax under this heading. - impugned orders cannot be sustained - Decided in favour of assessee.
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