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TMI Blog2016 (4) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... the airport shall be covered under "Airport Services", that means even a person is authorized to undertake the services in the airport, the service should be undertaken on behalf of Airport Authority. In the present case, the respondent is providing the services directly to M/s. Jet Airways (I) Pvt. Ltd. which is not on behalf of Airport Authority. The contract and terms thereof are decided by both i.e. by the respondent and M/s. Jet Airways (I) Pvt. Ltd., therefore it cannot be said that under this arrangement, Airport Authority has authorized the respondent to provide the services. Therefore, the Ld. Commissioner has correctly interpreted the definition of "Airport Services" and held that the services rendered by the respondent are not on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anded interest at the applicable rates under Section 75 of the Act, imposed penalties under Section 76 of the Finance Act, 1994 at ₹ 100/- for each day's delay till payment of service tax subject to the service tax not paid, ₹ 1,000/- under Section 77 and ₹ 20,27,162/- under Section 78 of the Finance Act, 19994. Being aggrieved by the aforesaid Order-in-Original, the respondent preferred an appeal before the Commissioner (Appeals), who vide the impugned order set aside the Order-in-Original and allowed the appeal. Therefore, the Revenue filed this appeal before us. 3. Ms. P.V. Sekhar, Ld. Dy. Commissioner (AR) appearing on behalf of the Revenue reiterating the grounds of appeal, further submits that the respondent h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its that as per the definition of Airport Services prevailing at the relevant time of this case, there was a pre-condition that any person, who is providing the services within the airport, should be authorized by the Airport Authority. In the present case, the respondent was not authorized by the Airport Authority to undertake particular services. The services were assigned to the respondent not by the Airport Authority but by the service recipient M/s. Jet Airways (I) Pvt. Ltd. Merely, because the entry within the airport premises was given by the Airport Authority of India does not amount to authorization as provided in the definition of Airport Services . The definition of Airport Services was subsequently amended in the Finance Bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der: Section 65(105)(zzm)- Taxable Service means any service provided to any person by Airport Authority or any person authorized by it, in an airport or civil enclave. As per the plain reading of the above definition of Airport Service, the services provided by two categories of persons, will fall under Airport Services, i.e. (a) Service provided by airport authority, or (b) Service provided to any person authorized by airport authority, in any airport or civil enclave. In the present case, Revenue's contention is that the respondent is covered under the category (b) above on the ground that the respondent provided services as per authorization by airport authority. As per the facts of the case, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Port Services' [section 65 (105)(zn)] and the Other Port Services' [section 65(105)(zz)] are being amended to provide that- (a) all services provided entirely within the airport/port premises would fall under these services, and (b) an authorization from the airport/port authority would not be a precondition for taxing these services. From the above explanation of D.O.F., it became clear that prior to definition of Airport Services in the Finance Bill 2010, the services provided by any person in the airport by authorization of airport authority was covered under the definition of Airport Services . However, subsequent to amendment the scope of airport services was enlarged and post amendment, service provided, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty does not bring out any evidence to show that the services had been rendered on behalf of the airports authority by the appellants or authorized by the airport authority. It is on this ground alone the demand confirmed by the adjudicating authority is liable to be set aside. 9. The findings of the adjudicating authority that all services provided in airport are taxable services without referring to the fact that in terms of definition they are required to be provided only by the airport authority or a person authorized by it, cannot be upheld, as it is based on incomplete interpretation of the definition of Airport services. The requirement of services being provided by the airports authority or by a person authorized by it has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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