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TMI Blog2016 (6) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... use notice dated 22nd October 2008 in F No. V/Adj/SCN/15-183/PNP/Rgd/08-09/10631 for confirmation of tax dues of Rs. 6,03,06,400 for the period from 2003-04 to 2007-08 with interest thereon and for imposition of penalties under section 76,77 and 78 of Finance Act, 1994. 2. The respondent is registered as provider of other port services and had contracted with the Maharashtra Maritime Board for improvement, operation and maintenance of the jetty and its backup area at Dharamtar for a 30-year period. This jetty was to be used for loading and unloading of import and export cargo. An agreement was entered into by the respondent with M/s United Shippers Ltd on 25th March 2003 for landing of import cargo by the latter for which respondent was to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fixed amount was the recompense for allowing M/s United Shippers Ltd exclusive use of jetty and back-up area, the original authority found that this amount was in the nature of rental for the sub-lease. Holding that port service and other port services are restricted to services in relation to vessels or cargo in a port, the impugned order has, by distinguishing rental of immoveable property service as a fresh taxable service that came into effect from 1st July 2007, held it as not covered by other port services. Further, taking note of the irrelevance of the role of custodian of import cargo as duty is paid before the cargo is loaded on barges for landing at jetty and the absence of any agreement for rendering any service other than p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to inclusion of the fixed receipts in the value of taxable service. 6. Though none appeared for the respondent, we find that the material on record suffices for us to render a decision in the dispute. The primary contention of Revenue is that the owners of the jetty, Maharashtra Maritime Board, is other port within the meaning of section 65 (zzl) of Finance Act, 1994 and, having authorised the respondent to render unloading and storage services within Dharamtar jetty and back-up land, all receipts obtained from the sole user of the port should be leviable to tax. 7. There are two categories of ports in India and, accordingly, the taxable services provided by ports were separately subject to tax from two distinct dates. Services rendered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because the taxable entry itself, as it stood then, restricted such activity to that rendered by other port. Impliedly, any consideration received in a transaction that does not fit within the activities of other port is not includible in taxable value. By acknowledging that such taxable service can be performed by any other person, subject to authorization granted by the other port, is sufficient to infer that all activities within the other part are not intended to be taxed under this head. It would appear from the definition of other port supra that such authorization would be related to such services as are statutorily provided. 10. We also take note of the amendments in the levy of tax on port service and other port service in 2010. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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.
13. In these circumstances, the contentions in the show cause notice do not sustain. We, therefore, find no reason to interfere with the findings of the original authority in the impugned order that dropped the proceedings.
14. Appeal is without merit and is rejected.
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