TMI Blog2016 (6) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 - Appeal No. ST/256/2010 - Order No. A/86879/16/STB - Dated:- 1-10-2015 - Shri M V Ravindran, Member (Judicial) And Shri C J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , allegedly, on this amount of ₹ 58,20,00,000/-, tax liability had not been discharged though this should have been included in the taxable consideration as per section 67 of Finance Act, 1994. 3. According to the show cause notice, these fixed payments were for the exclusive use of the jetty and back-up land by M/s United Shippers Ltd for docking barges carrying bulk cargo from mother vessel to shore and storing of landed cargo till removal; as this was in relation to unloading of bulk cargo and its storage, it was liable to be included in the gross amount charged and received as consideration for rendering of taxable services. The notice presses for taxing this amount as the authority to charge from M/s United Shippers Ltd was de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eased out the jetty to M/s United Shippers Ltd for the express purpose of unloading of cargo and that the back-up land had been leased out for storage and handling of such cargo which brought it within the meaning of having rendered other port services. Relying on the decision of the Tribunal in Gujarat Chem Port Terminal Co Ltd v Commissioner of Central Excise Customs [2008 (9) STR 386 (Tri)], Revenue submits that storage facility provided by port is an incidental service and integral part of port service. Learned Authorized Representative drew attention to the definition of port service in section 65(82) of Finance Act, 1994 and contends that respondent was the person authorized by the port with M/s United Shippers Ltd as the recipie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h greater flexibility than is afforded to a departmental undertaking. 8. Section 65(76) of Finance Act, 1994 defines other port as has the meaning assigned to port in clause (4) of section 3 of Indian Ports Act, 1908, The relevant taxable entry, incorporated in 2003 in section 65 of Finance Act, 1994 is (zzl) to any person, by other port or any person authorized by that port in relation to port services, in any manner. Port service is defined in section 65(82) of Finance Act, 1994 as any service rendered by a port or other port or any person authorised by such port or other port, in any manner, in relation to a vessel or goods. 9. The respondent is in receipt of consideration from a single entity i.e. M/s United Shippers Ltd and, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010, restricted to those obligations that devolved under the statute in relation to vessel and cargo. 11. Ports are not only safe harbours for berthing of vessels and for storage of inward and outward cargo but, often, have tracts of land which are leased out to tenants. Responsibility for piloting of vessels to the quays/jetties devolves on the port along with facilities for the berthed vessels. Shore facility for loading on and unloading from berthed vessels is also within the domain of responsibility of the port. A port declared as a customs port undertakes responsibility of custodianship of import cargo till the duty is paid on such cargo. These are the functions of a port in relation to vessels or cargo. 12. The respondent has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
