9911796707
TMI Blog2008 (6) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Meenatchi Sundaram, Consultant, for the Appellant. Shri N.J. Kumaresh, SDR, for the Respondent. [Order per: P.G. Chacko, Member (J)]. - M/s. Chennai Port Trust, a PSU, have obtained the requisite clearance from the 'Committee on Disputes' to pursue these proceedings against Order-in-Original No. 77/2007 dated 16-5-2007 of the Commissioner of Service Tax, Chennai, wherein service tax of over Rs. 3 crores has been demanded along with Education 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvision". Clauses (i) to (vi) are reproduced below :- (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or (iii) any customer care service provided on behalf of the client; or (iv) procurement of goods or services, which are inputs for the client; or Explanation .- For the removal of doubts, it is hereby declared that for the purposes of this 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 te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax, they are taxable when performed through agents like Port Trust. It is also remarked that, if the learned consultant's argument is accepted, the very purpose of clause (vii) insofar as it relates to activities of exempted categories of service-providers would be defeated. The learned consultant has also referred to Notification No. 25/2004-S.T. dated 10-9-2004, where-under many of the business auxiliary services, including incidental/auxiliary services, were exempted 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 Tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ys cannot be said to be taxable in the category of BAS. Had the railways themselves rendered their services in the Port area, then any other service or auxiliary to such service would also, perhaps, have been exempt from payment of service tax. The factual situation obtaining in this case is different inasmuch as the Southern Railway was not directly performing any service in the Port area. The Port Trust was performing such services on behalf of the railway and hence the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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