TaxTMI 
TaxTMI 
2009 (8) TMI 290
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....ined by SSM, it transpired that they had received an amount of Rs. 16,73,53,660/- towards cost of loading, unloading, reloading, transportation, etc. and had not declared the said income in the ST-3 returns filed by them. Adjudicating allegations of contravention of various provisions of the Act by the appellants with intention to evade payment of service tax due, the Commissioner found vide the impugned order that SSM had rendered taxable services classifiable under the category of 'Port Service' during the material period. The Commissioner found that SSM had rendered taxable services classifiable under the category 'port service' during the period 2002-2003 to 2006-07 and intentionally evaded payment of ser vice tax of Rs. 1,72,00,491/- a....
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.... of the Service Tax Rules, 1994 were also im posed. SSM has challenged the demand and penalties on various grounds cited in the appeal. 2. We have heard both sides. During the hearing, the learned Counsel for the appellants reiterated the various grounds raised in the appeal. It was submitted that liability to tax of the activities in question such as clearing and forwarding, cargo handling, loading, unloading etc., carried out within the port area by the parties with no authorization stood settled by a decision of the Tribunal in the case of Homa Engineering Works v. CCE, Mumbai [2007 (7) S.T.R. 546 (Tri. Mum.)]. The activities of loading, unloading, reloading, transportation, etc. undertaken by the appellants within the port do not fall ....
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....lassified under C & F agent and steamer agent and activities such as loading, unloading, re-loading, transportation etc. These services were found to be port service owing to its dominant character conforming to definition of port service. As per Section 65(82) of the Act, the appellants had been issued with a registration certificate on the strength of which it rendered C & F agent service and steamer agent service in the port area. 'Port service' means any service rendered by a port or other port or any person authorized by such port or other port in any manner in relation to a vessel or goods. The demand has been confirmed towards service tax found due from the appellants under the category 'port ser vice' on the basis that the appellant....
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....ed by the appellant were covered by the Port Services. Further, the Tribunal in the above case has observed that the authorization would make an assessee step into shoes of the Port. Having already observed that such services were not required by the port, any authorization by the Port cannot convert the services into port services. In any case, we find that there is no authorization by the Port to the appellant to conduct the services on his behalf. Licences issued by the Port authorities cannot be considered as authorization. Such licences are issued by the Port authorities to all the persons working in the Port to ensure the safety and security on the Port Area and does not confer any power or authority of the Port on the person so issue....