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2024 (3) TMI 499 - CESTAT KOLKATALevy of service tax - port services - business auxiliary service - providing services in the 'port area' in the capacity of a sub-contractor to the stevedores/main contractors - failure to pay Service Tax on services even though they were registered under the category of ‘port services’ - HELD THAT:- Any service rendered within the port area by any person to any other person, in any manner has been brought under the Service Tax net under the category of ‘port service’ only with effect from 01.07.2010 vide the Finance Act, 2010. Prior to this date, only such port services provided by a person authorized by the port in relation to a vessel or goods were liable to Service Tax under the category of port services. As the Respondent was not authorized by the port to render the services in the port area, the services rendered by them are not liable to Service Tax under the category of port services prior to 01.07.2010 - As the demand in this appeal pertains to the period from 2005-06 to 2007-08, it is held that the services rendered by the Respondent are not liable to Service Tax under the category of port services - there are no infirmity in the impugned order passed by the ld. adjudicating authority in dropping the demand of service tax under the category of port services. Demand of Service Tax under the category of ‘business auxiliary service’ - HELD THAT:- The Respondent has given cranes and other equipments on hire to stevedores and other clients for handling of cargo. These services are classifiable under the category of ‘supply of tangible goods service’ which has been brought under the Service Tax net only with effect from 16.05.2008. Thus, for the period prior to 16.05.2008, the services of hiring of equipment for handling of cargo in the port area cannot be charged to Service Tax under the category of business auxiliary service. Accordingly, there are no infirmity in the order of the ld. adjudicating authority in dropping the demand of service tax under the category of 'business auxiliary service'. The dropping of the demands by the ld. adjudicating authority in the impugned order upheld - appeal of Revenue dismissed.
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