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TMI Blog2015 (9) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... lso in view of the specific provision in the definition relating to authorization, we consider that the impugned order taking a view that levy is sustainable cannot be upheld. We also find that the appellants’ operation in Bhavnagar which is limited to hiring a barge to the customer cannot be levied to tax under Port Service. Therefore, demand for Service Tax under the category of Port Service also cannot be sustained. Appellant merely identified and arranged services of licenses steamer agents Custom house agents, etc., for ship owners based in the United States from 29-3-2006 and were remitting the Service Tax treating the service rendered by them as business auxiliary service. This is because the foreign ship owners were reimbursing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6/2009, Order-in-Original passed in respect of show cause notice issued for the period from April, 2006 to March, 2007 is under challenge and in this order, the demand for Service Tax under cargo handling services has been dropped but the demand under other port services has been confirmed involving Service Tax of more than ₹ 66 lakhs. In the third Order-in-Original under challenge, the show cause notice issued for the period from April, 2007 to March, 2008 is dealt with and demand for Service Tax of more than ₹ 25 lakhs has been confirmed. 3. In the first order, barge operations in Cochin for Fertilizers and Chemicals Travancore Ltd. (FACT) and for Binani Zinc through South Indian Corporation Ltd. (SICL) as a sub-contractor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration and remitting the Service Tax. The learned AR would reiterate the observations in the impugned order in support of the Revenue s case. 5. Further barge operations in Cochin, Chennai and Kolkata have been considered as cargo handling services for the period from April, 2006 to March, 2007 and it was submitted that appellant was merely engaged in transportation of cargo on the river and they were not undertaking any cargo handling work. It was also submitted that with effect from 1-9-2009 transport of export goods or transport of goods through national waterway or inland water is a taxable service. What appellant had undertaken was mere transport of export goods and therefore, no Service Tax could have been levied for the period pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in view of the facts as submitted, we find that the services rendered to FACT cannot be considered as cargo handling services and therefore, the demand on this account cannot be sustained. 7. As regards services rendered to Binani Zinc, the appellant is a sub contractor of SICL and it was SICL who was remitting Service Tax. SICL has also confirmed that appellant was engaged only in transportation service. Since the tax has been demanded under cargo handling service and not for transportation of cargo and also taking note of all the submissions regarding transport of coastal goods or through waterways which became liable to tax from 1-9-2009, we consider that the impugned order confirming the demand for cargo handling service cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a port or other port or any person authorized by such port or other port in any manner, in relation to a vessel or goods. The definition of taxable services under Section 65(105)(zn) (zzl) read as follows : Taxable service means any service provided or to be provided; (zn) to any person, by a port or any person authorized by that port in relation to port services, in any manner; (zzl) to any person, by other port or any person authorized by that port in relation to port services, in any manner. By the Finance Act, 2010 the aforesaid definitions were amended as follows :- (5) for clause (82), the following clause shall be substituted, namely :- (82) port service means any service rendered within a port or any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agent during the relevant period was as under :- Steamer agent means any person who undertakes either directly or indirectly, - To perform any services in connection with a ship s husbandry or dispatch including the rendering of administrative work related thereto, To book, advertise or canvass for cargo for or on behalf of a shipping line; or To provide contained feeder services for and on behalf of a shipping line; It was submitted that appellant merely identified and arranged services of licenses steamer agents Custom house agents, etc., for ship owners based in the United States from 29-3-2006 and were remitting the Service Tax treating the service rendered by them as business auxiliary servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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