2008 (7) TMI 138

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.... R. Bhagya Devi, SDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - After examining the records and hearing both sides, we note that the appellants have been called upon to pay service tax of over Rs. 3 crores on an amount of what is called 'royalty' received by them from M/s. PSA SICAL Ltd. (hereinafter referred to as "SICAL") during the period June, 03 to February, 06. Equal am....

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....ovided by the Port Trust. Since then, the terminal is being used by M/s. SICAL for opera tions mentioned as 'Port Services' under Section 42(1) of the Major Port Trusts Act. In the process of such operations, M/s. SICAL are rendering Port Services to their customers viz owners of cargo imported or exported and they are paying service tax on the amounts collected from their customers for such servi....

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....category of 'Port Services'. It is submitted that royalty is being paid by M/s. SICAL to the Port Trust in the nature of rent for use of the seventh berth (a property of the Port Trust) for rendering Port Services to customers. It cannot be considered to be consideration received by the Port Trust from M/s. SICAL for any Port Services as defined under Section 65(82) of the Finance Act, 1994. For w....

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....cept the point sought to be made by the learned SDR. Under the licence agreement, the appellant (Port Trust) authorised M/s. SICAL, inter alia, to render Port Services at the seventh berth to owners of import and export cargo. Obviously, this arrangement fell under Section 42(3) of the Major Port Trusts Act. Under this provision read with the definition of 'Port Services' given under Section 65(82....