9911796707
TMI Blog2008 (6) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ducation Cess for the period February 2004 to March 2006 under the category of 'Business Auxiliary Service' defined under Section 65(19) of the Finance Act, 1994. Interest on tax has also been demanded under Section 75 of the Act and a penalty has been imposed under Section 76 of the Act. Under an agreement called "Working Agreement" entered into with the Southern Railway, the Port Trust, during the material period, undertook the activity of transporting cargo (both imported and exported) between the dock and the entry point of the Port area. Upto, and from, the said entry point, the railway themselves undertook the transportation directly. Within the Port area, the Port Trust undertook the said activity (including unloading of cargo at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sub-clause, "inputs" means all goods or services intended for use by the client; (v) production or processing of goods for, or on behalf of, the client; (vi) provision of service on behalf of the client; It is the case of the appellant that, for levy of service tax in terms of clause (vii), the services/activities mentioned in that clause should be incidental or auxiliary to any activity specified in clauses (i) to (vi). It is submitted that none of the activities specified in clauses (i) to (vi) was undertaken by the appellant and therefore the activities of billing, collection of cheques, maintenance of accounts, remittance etc. undertaken by them were not to be treated as BAS of the kind defined under clause (vii). On the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from payment of service tax for the period prior to 10-9-2004. The learned consultant has also referred to certain amendments brought to the definition of BAS given under Section 65(19). 2. After giving careful consideration to the submissions, we note that the Port Trust was, admittedly, acting as an agent of the Southern Railway in the matter of billing the cargo owners, collecting the cheques and depositing the same with the RBI. The bills and the corresponding receipts stood in the name of the railway and the cheques were drawn in favour of the railway. The remittances were made into the railway's account with RBI. The wagons used for transportation of the cargo between the dock and the entry point belonged to the railway. Undoubtedl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same was exigible to service tax under clause (vi). Consequently, the activities such as billing, collection of cheque etc., which were incidental or auxiliary to above services, would also be covered by the service tax net. 3. The learned SDR has pointed out that the Port Trust was paying service tax in respect of the same activities but in a different category (Port Services) prior to February 2004. The consultant submits that those payments were made under protest and that the dispute is still pending before this Tribunal. 4. In the present application, there is no plea of limitation, nor any plea of financial hardships. 5. The learned consultant has not provided any break-up of the amount of tax to enable the Bench to ascertain as to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
