Cargo handling by a Custom House Agent was not taxable as Port Services when done for export goods in port premises.

Cargo handling of export goods undertaken by a Custom House Agent in port premises was treated as part of Customs House Agent services, not as taxable Port Services. The Tribunal noted that the activity was not performed on the strength of authorisation issued by the Port Trust under section 42(3) of the Major Port Trusts Act, 1963, and followed its earlier view that such handling did not fall within the Port Services levy. The departmental appeal was rejected, leaving the activity outside service tax under that category.

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Issues: Whether cargo handling of export goods undertaken by a Custom House Agent in the port premises could be classified and taxed as Port Services.

Analysis: The activity in question was cargo handling relating to export goods carried on by the respondent in its capacity as a Custom House Agent. The Tribunal noted that the respondent was already discharging service tax under the category of Custom House Agent services. It also accepted the view that such handling activity was not rendered on the strength of authorization issued by the Port Trust under section 42(3) of the Major Port Trusts Act, 1963. The Tribunal further found the impugned order consistent with its earlier decision holding that such activity could not be subjected to service tax as Port Services.

Conclusion: Cargo handling of export goods by the Custom House Agent in the port premises was not taxable as Port Services; the departmental appeal was rejected.

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