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2016 (6) TMI 319 - AT - Service TaxOther port services - Consideration received for exclusive use of jetty and back-up land - Demand of Service tax alongwith interest and imposition of penalty - Section 76, 77 and 78 of the Finance Act, 1994 - Held that:- the respondent has been discharging its tax liability on the consideration for cargo handled. In relation to the fixed charges, the very nature of the charge delinks it as consideration for handling of cargo. The fixed charges pertain to exclusive access afforded to M/s United Shippers Ltd of the jetty and the back-up land. There is no segregation of consideration for the back-up land even if that is assumed to be facilitation of space in relation to cargo. It is also an admitted fact that duty liability on import cargo is discharged while yet on the mother vessel. Consequently, custodianship of import cargo requiring assigning of storage space is not a statutory obligation of the Maharashtra Maritime Board. Therefore, even if the goods are allowed to be stored after landing, the lease terms does not transform the activity into one of rendering other port services. Therefore, show cause notice do not sustain. - Decided against the revenue
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