TMI Blog2005 (7) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... e Board for the various services, at the rate specified by a notification in the official gazette. This reflects upon the fact that the various services, which can be authorised by the Board by any person are routine service for which various rates can be fixed. As far as repairing of the vessel, chipping and painting is concerned, the charges would definitely depend upon the extent of work required to be done. Such consideration, we have been told, depends upon the contract arrived at after negotiations. As such, prima facie, we are of the view that the services of repairing of the vessels are not Port Services and not liable to service tax during the relevant period. We, accordingly, allow the stay petition unconditionally and fix the mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Port Trust Act and Finance Act, 1994, held against the appellants and confirmed the demand as also imposed penalty. 3. Shri V. Sridharan, ld. Advocate arguing on behalf of the appellants has submitted that clause 67 of the Finance Act, 1994 refers to Port Service as any service rendered by a port or any person authorised by such port, in any manner, in relation to a vessel or goods . Port has been defined in clause 66 as having the meaning assigned to it under section 2(q) of the Major Port Trusts Act, 1963. Thereafter referring to the definition of port as given in the above section of Major Port Trust Act, he draws our attention to Section 42 detailing thereby the Board or other person. He submits that the authorities below have taken no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates, but the same are result of contract entered by way of negotiations. As such, it cannot be called to be a Port Service rendered by a person authorised by the port. He submits that the said service was an independent repairing activity undertaken by the appellants. Such repairing activity was made liable to service tax subsequently and not during the relevant period. As such, submits the ld. Advocate that the appellants had a strong prima facie case in his favour and should be granted unconditional stay. He has also referred to the fact that deposit of even a part amount of duty would result in financial hardship to the appellants. 5. Countering the arguments, ld. DR draws our attention to Section 35 of the Major Port Trust Act, 1963, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by a notification in the official gazette. This reflects upon the fact that the various services, which can be authorised by the Board by any person are routine service for which various rates can be fixed. As far as repairing of the vessel, chipping and painting is concerned, the charges would definitely depend upon the extent of work required to be done. Such consideration, we have been told, depends upon the contract arrived at after negotiations. As such, prima facie, we are of the view that the services of repairing of the vessels are not Port Services and not liable to service tax during the relevant period. We, accordingly, allow the stay petition unconditionally and fix the main appeal itself on 5 August 2005. (Pronounced in Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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