9911796707
TMI Blog2008 (7) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... dent. [Order per : P.G. Chacko, Member (J)]. - After examining the records and hearing both sides, we note that the appellants have been called upon to pay service tax of over Rs. 3 crores on an amount of what is called 'royalty' received by them from M/s. PSA SICAL Ltd. (hereinafter referred to as "SICAL") during the period June, 03 to February, 06. Equal amount of penalty has also been imposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terminal is being used by M/s. SICAL for opera tions mentioned as 'Port Services' under Section 42(1) of the Major Port Trusts Act. In the process of such operations, M/s. SICAL are rendering Port Services to their customers viz owners of cargo imported or exported and they are paying service tax on the amounts collected from their customers for such services. Under the above agreement, which auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that royalty is being paid by M/s. SICAL to the Port Trust in the nature of rent for use of the seventh berth (a property of the Port Trust) for rendering Port Services to customers. It cannot be considered to be consideration received by the Port Trust from M/s. SICAL for any Port Services as defined under Section 65(82) of the Finance Act, 1994. For whatever services rendered by M/s. SICAL to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned SDR. Under the licence agreement, the appellant (Port Trust) authorised M/s. SICAL, inter alia, to render Port Services at the seventh berth to owners of import and export cargo. Obviously, this arrangement fell under Section 42(3) of the Major Port Trusts Act. Under this provision read with the definition of 'Port Services' given under Section 65(82) of the Finance Act, 1994, M/s. SICAL has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can not be sustained. 3. In the above view of the matter, we are inclined to grant waiver of pre-deposit and stay of recovery in respect of the amounts of service tax, interest and penalties. It is ordered accordingly. 4. The appellants have also filed an application for out-of-turn disposal of the appeal and the same is not opposed. Considering the high stake involved in the case, we allow this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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