Port and airport service classification may extend tax to non taxable activities by location, risking renewed litigation.
Amendments to the definitions of port and airport services added provisos excluding the statutory classification provision for services rendered wholly within such premises, intended to cover taxable services provided entirely within ports/airports. A later exemption notification carved out specific services-many ordinarily non taxable-creating a potential conflict that could permit taxation of other non taxable services supplied within port/airport precincts and thereby generate litigation over the territorial and classificatory scope of the levy. (AI Summary)