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2016 (4) TMI 986 - CESTAT MUMBAI

2016 (4) TMI 986 - CESTAT MUMBAI - 2016 (43) S.T.R. 120 (Tri. - Mumbai) - Whether the manpower services rendered by the respondent are on behalf of the airport authority or not - providing services to M/s. Jet Airways (I) Pvt. Ltd. in the airport premises under a contract - Revenue contended that respondent is covered under Section 65(105)(zzm)(b) on the ground of providing services as per authorization by airport authority - Held that:- the terms ‘services provided to any person by any person w .....

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on behalf of Airport Authority. The contract and terms thereof are decided by both i.e. by the respondent and M/s. Jet Airways (I) Pvt. Ltd., therefore it cannot be said that under this arrangement, Airport Authority has authorized the respondent to provide the services. Therefore, the Ld. Commissioner has correctly interpreted the definition of "Airport Services" and held that the services rendered by the respondent are not on behalf of the airport authority or authorized by airport authority. .....

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e Order-in-Original No. 12/STC/AS/07-08 dated 27/03/2008 and allowed the appeal filed by the respondent. 2. The fact of the case is that the respondent provided the services of loading/unloading of cargo, aircraft cleaning, provision of ground service equipments and arranging for manning of ground transportation through trained personnel for this work. The respondent supplied manpower to M/s. Jet Airways (I) Pvt. Ltd. in the airport premises. Respondent was issued a show cause notice dated 31/03 .....

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ion 76 of the Finance Act, 1994 at ₹ 100/- for each day's delay till payment of service tax subject to the service tax not paid, ₹ 1,000/- under Section 77 and ₹ 20,27,162/- under Section 78 of the Finance Act, 19994. Being aggrieved by the aforesaid Order-in-Original, the respondent preferred an appeal before the Commissioner (Appeals), who vide the impugned order set aside the Order-in-Original and allowed the appeal. Therefore, the Revenue filed this appeal before us. 3. .....

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uot;Airport Services" as provided under Section 65(105)(zzm) of the Finance Act, 1994. Hence, the respondent is liable for service tax. She further submits that the Airport Authority, as regard to the dispute of payment of service tax, written a letter dated 16/11/05 asking the respondent to pay the service tax on non-traffic revenue and if no service tax registration is taken, then permission to operate any such contract in airport premises would be withdrawn. This correspondence clearly s .....

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me to a conclusion that the services provided by the respondent do not fall under the category of "Airport Services", therefore the same is not taxable. He further submits that as per the definition of "Airport Services" prevailing at the relevant time of this case, there was a pre-condition that any person, who is providing the services within the airport, should be authorized by the Airport Authority. In the present case, the respondent was not authorized by the Airport Aut .....

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issued by Tax Research Unit of Central Board of Excise & Customs, wherein this dispute stands absolutely settled and it was clarified that if a services was authorized by Airport Authority of India to be undertaken by any person, it will cover under the terms of authorization. However, only permission for entry to the airport premise to undertake any service for the person other than Airport Authority would not be termed as authorization by Airport Authority of India. The Ld. Commissioner h .....

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Pvt. Ltd. This shows that the services provided by the respondent were not authorized by Airport Authority of India to be undertaken. The service provider is the respondent and the service recipient is M/s. Jet Airways (I) Pvt. Ltd. The Airport Authority of India has no role in providing the said services. The services can fall under the "Airport Services" if it fulfill the ingredients provided in the definition of "Airport Services", which reads as under: Section 65(105)(zzm .....

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ontention is that the respondent is covered under the category (b) above on the ground that the respondent provided services as per authorization by airport authority. As per the facts of the case, it is M/s. Jet Airways (I) Pvt. Ltd., who assigned the job of various services to the respondent. The airport authority has no role as regard provision of services by the respondent to M/s. Jet Airways (I) Pvt. Ltd. At the most, airport authority's role is to permit the respondent for undertaking .....

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n on behalf of Airport Authority. In the present case, the respondent is providing the services directly to M/s. Jet Airways (I) bPvt. Ltd. which is not on behalf of Airport Authority. The contract and terms thereof are decided by both i.e. by the respondent and M/s. Jet Airways (I) Pvt. Ltd., therefore it cannot be said that under this arrangement, Airport Authority has authorized the respondent to provide the services. 6.2 We have perused the D.O.F. No. 334/1/2010-TRU dated 26-02-2010, wherein .....

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would not be a precondition for taxing these services. From the above explanation of D.O.F., it became clear that prior to definition of "Airport Services" in the Finance Bill 2010, the services provided by any person in the airport by authorization of airport authority was covered under the definition of "Airport Services". However, subsequent to amendment the scope of airport services was enlarged and post amendment, service provided, whether it is by authorization or other .....

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ds of the case and submissions made it the grounds of appeal. The issue involved here is whether the services offered by the appellant to M/s Jet Airways (I) P. Ltd. for providing various ground services, such as housekeeping, loading/unloading of cargo, aircraft cleaning, provision of ground service equipments and arranging for manning of ground transportation fall under the category of Airport services. The period involved in this case is between 10-9-2004 to 30-4-2005. During this period, the .....

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