Port service classification requires express port-authority authorisation; absence of it supported waiver of pre-deposit and stay.

Service can be taxed as port service only where the person is expressly authorised by the port authority for the charging provision. On the materials considered, the Tribunal found no express authorisation and rejected deemed authorisation based on the Commissioner's reasoning. It also noted that the appellants had paid tax under another category during the relevant period and relied on an earlier Tribunal decision on similar facts. These factors created a strong prima facie case against the demand, and the appellants were granted waiver of pre-deposit and stay of recovery of service tax and penalties.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery of service tax and penalties demanded under the category of port services.

Analysis: For service to fall within port services, authorisation by the port authority must be express for the purpose of the charging provision. On the materials before it, the Tribunal found that the appellants were not shown to have been expressly authorised by the port authority, and that the Commissioner's reasoning did not support a deemed authorisation. The Tribunal also noted that the appellants had been paying tax under another category for the relevant period and had support from an earlier Tribunal decision on similar facts. These considerations established a strong prima facie case against the demand.

Conclusion: The appellants succeeded on the stay applications and were granted waiver of pre-deposit and stay of recovery.

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