TaxTMI 
TaxTMI 
2019 (5) TMI 160
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....ortation of cargo through barges from mother ship to jetty. It is alleged that these services are taxable under the category of port service. * Salary of floating crane operator: Crane operator employed by the appellants to operate the crane used for handling of cargo from mother ship to barges. The bills have been raised on M/s Essar Shipping Ltd. The services are alleged to be taxable under the category of port services. * Management and allied services: The appellants provided the services of terminal maintenance, jetty cleaning, house-keeping, moving/unmoving of barges/ vessels at berth, cleaning of barges, cleaning of vessel deck, closing/ unclosing of hatches of the mini bulk carrier, technical services for the cranes of barges, l....
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....l has been upheld by the Hon'ble Apex Court as reported in 2015 (39) STR J369 (SC). He also relied on the decision of Tribunal in the case of Velji P & Sons (Agencies) P. Ltd. 2007 (8) STR 236 (Tri. Amd.), wherein it has been held that there is a difference between license and authorization. He invited attention to para 8 of the said judgment to hold that they were only holding the license to provide such services in the port. He argued that such licenses cannot be treated as authorization given by the port and thus the service provided by them cannot be treated as port service. He relied on the following decisions. * Velji P. & Sons (Agencies) P. Ltd. 2007 (8) STR 236 and affirmed by Hon'ble SC in 2009 (13) STR J31 (SC) * Essar Logisti....
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....t & Allied Services: The next issue relates to the service of stevedoring provided by the appellant. Ld. Counsel argued that the said service is not taxable since they were not authorized by the port to provide the said service and relied on the decision of Tribunal in the case Velji P & Sons (Agencies) P. Ltd. (supra). 2.5 Salary paid to Foreman/ Khalasi: Ld. Counsel argued that they were also engaged in supply of foreman/ khalasi to M/s Essar Steel Ltd. The said foreman/ khalasi were their employees and were supplied to M/s Essar Steel Ltd. on temporary basis. He relied on the decision of Tribunal in the case of Arvind Mills Ltd. 2014 (34) STR 610 (Tri.-Amd.), wherein it has been held that said taxable mill was not engaged primarily in r....
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....self is owned by M/s Essar Steel Ltd. Thus the said work order of port amounts to authorization by the port. He also relied on the decision of Tribunal in case of Western Agencies (P) Ltd. 2008 (12) STR 739. 4. We have gone through rival submissions. The appellants are engaged in providing various services in the port area and otherwise. The appellant are providing following four service: a) Freight on barges: The appellants had entered into agreement with M/s Costal Energy Pvt. Ltd. for transportation of cargo through barges from mother ship to jetty. It is alleged that these services are taxable under the category of port service. b) Salary of floating crane operator: Crane operator employed by the appellants to operate the crane use....
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....ed on the decision of Tribunal in the case of Western Agencies (P) Ltd. 2008 (12) STR 739 which has been passed after disagreeing with the decision of Tribunal in the case of Velji P & Sons (Agencies) P. Ltd. (supra). However, later the decision of Tribunal in case of Velji P Sons (supra) was approved by Hon'ble Apex Court as reported in 2009 (13) STR J31 (SC). 4.2 At the material time port, port service and other ports were defined as follows: "Port has the meaning assigned to it in clause (q) of section 2 of the Major Port Trusts Act, 1963 (38 0f 1963)." "Port Service means any service rendered by a 'Port' or the 'Other Port' or any person authorized by such port or other port, in any manner, in relation to a vessel or goods." "Oth....