Stevedoring and allied port activities treated as taxable port services; no prima facie case for waiver of pre-deposit.

Service tax on stevedoring and allied activities was treated as chargeable as port services where the work was performed after unloading of cargo, including heaping, high-stacking and intercarting within the port area. The Tribunal noted that the appellants operated under a stevedore licence from the Port Trust and that these activities were ancillary to port operations and separate from the unloading service already taxed by the Dock Labour Board. It further held that reliance on Section 42 of the Major Port Trust Act, 1963 did not defeat the liability. On this basis, no prima facie case for waiver of pre-deposit was made out.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay against the demand of service tax on stevedoring and allied activities treated as port services.

Analysis: The demand arose under the Finance Act, 1994 in respect of services performed after unloading of cargo from vessel onto dock, including heaping, high-stacking and intercarting within the port area. The appellants contended that the Dock Labour Board had already discharged tax for the relevant period and that the circulars of the Board supported their stand. The Tribunal found, however, that the activities undertaken by the appellants were performed under the stevedore licence issued by the Port Trust, were subsequent to the main unloading activity, and were ancillary to the port operations. It held that the tax paid by the Dock Labour Board related only to unloading of cargo and did not cover the appellants' separate stevedoring operations. The Tribunal also held that the liability could not be defeated by reference to Section 42 of the Major Port Trust Act, 1963.

Conclusion: The appellants failed to establish a prima facie case against the service tax demand, and pre-deposit was warranted.

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