TMI Blog2019 (2) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... lxxxii) of Section 65. It is a percentage of that, which the IGTPL pays to CPT, in lieu of surrendering their rights to carry out and provide port services in the subject terminals. There is no port service by the CPT to IGTPL. Rental amounts collected for various depots - Held that:- License fees were found to be not classifiable under port service or taxable under the Finance Act. As to rent from immovable property the Tribunal found that the same is appropriately classified only from 01.06.2007 - appeal rejected. The relationship between IGTPL and CPT continued in the relevant year as in the prior years. The amended provision also does not bring the subject transaction between the CPT and IGTPL, within the tax net work of Finance A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling containers. As per the agreement; IGTPL had to pay license fee of ₹ 9.60 crores subject to 5% escalation yearly from 01.04.2004 for use and occupation of the project site. The IGTPL also agreed to pay ₹ 40.80 crores in 8 annual installments towards the transfer of assessee's equipments to IGTPL. On receipt of the amounts as per the agreement, the respondent allegedly did not satisfy its liability to service tax and hence proceedings were taken. The second agreement entered into with IGTPL was for development and operation of a terminal called Rajiv Gandhi Container Terminal within the port area. The agreement extended over a period of 30 years and IGTPL was to pay a royalty every month of 33.3% of the gross revenue ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Upfront Payment under Article 5.1 hereof, and in respect of the crane leased from M/s. ABG Heavy Industries Ltd., the leasehold rights and subsequently the ownership shall pass in accordance with the provisions of Article 2.4(A(V). Provided that except as provided in Article 6.2 hereof, nothing herein contained shall entitle the Licensee to create any encumbrance thereon including an encumbrance by way of a license without the prior written encumbrance shall be created by the Licensee over the Licensor's Equipment, except that the Licensee may dispose off in any manner such Licensor's Equipment, with the prior approval of the Licensor (such approval shall not be making its decision, the Licensor shall hold discussions with the Lice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cally under sub-clause (lxxxii) of Section 65. It is a percentage of that, which the IGTPL pays to CPT, in lieu of surrendering their rights to carry out and provide port services in the subject terminals. There is no port service by the CPT to IGTPL. We hence find the order of the Tribunal to be perfectly in order. 8. On the question of rental amounts collected for various depots the Tribunal found that this was only licensee fee received from various persons of the purpose of erecting jetties within the jurisdiction of the CPT. License fees were found to be not classifiable under port service or taxable under the Finance Act. As to rent from immovable property the Tribunal found that the same is appropriately classified only from 01.06 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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