TMI Blog2008 (7) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... i K.S. Venkatagiri, Advocate, for the Appellant. Smt. R. Bhagya Devi, SDR, for the Respondent. [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 on the appellants, in addition to demand of interest on tax. The appellant is a Port Trust administering a major port, whose activities, functions and operations are governed by the provisions of the Major Port Trusts Act. The above demand on the royalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of royalty paid at such rates by M/s. SICAL to the appellant for the period June,'03 to February,'06. It is the case of the appellants that this amount is not exigible to levy of service tax under the category of 'Port Services'. It is submitted 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 cargo owners at the seventh berth, charges were collected by the former and service tax thereon was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorisation to render Port Service under Section 42 of the Major Port Trust Act. For such services, the authorised person has been paying service tax. The case of the Revenue that the royalty received by the Port Trust from M/s. SICAL for the right to use the seventh berth for rendering Port Services to cargo owners should also be brought within the purview of levy of such Port Services prima facie 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. Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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