Port services classification may extend to work within port limits by authorised persons, with Larger Bench reconsideration sought.

Services rendered within port premises by a licensed stevedore, where they go beyond pure stevedoring, were considered capable of falling within "port services" under the Finance Act, 1994. The order read the expression "in any manner" broadly and treated services performed within port limits by a port or an authorised person as potentially taxable as port services, without confining the definition by reference to Section 42(1) of the Major Port Trusts Act, 1963. It also noted that the earlier coordinate Bench view required reconsideration in light of the differing statutory scheme for major and minor ports, and therefore referred the matter for constitution of a Larger Bench without finally deciding the merits.

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Issues: Whether services rendered within port premises by persons holding stevedoring licences, other than pure stevedoring, fall within the ambit of "port services" under the Finance Act, 1994, and whether the matter required reconsideration by a Larger Bench.

Analysis: The definition of "port service" was examined in the context of major and minor ports, the meaning of "port" and "other port", and the relationship between the Finance Act, 1994 and the Major Port Trusts Act, 1963 and the Indian Ports Act, 1908. The view taken in earlier coordinate Bench decisions was reconsidered. The order reasoned that the expression "in any manner" in the definition was wide, that services rendered within port limits by a port or an authorized person were capable of being classified as port services, and that the scope of the definition should not be confined by reference to Section 42(1) of the Major Port Trusts Act, 1963. The order also noted that the earlier coordinate Bench view appeared to require reconsideration in light of the differing statutory scheme applicable to major and minor ports.

Conclusion: The order expressed a contrary prima facie view on classification, but did not finally decide the merits; instead, it directed placement of the records before the Hon'ble President for constitution of a Larger Bench.

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