Case Details: Airports Authority of India vs. Commissioner of Service Tax (2025) 34 Centax 387 (S.C.)
Judiciary and Counsel Details
- Pankaj Mithal & Prasanna B. Varale, JJ.
- S/Shri Y. K. Kapur, learned counsel, Bhushan Kapur, Advs. and Amrendra Kumar Mehta, AOR, for the Appellant
- Shri Gurmeet Singh Makker, AOR, for the Respondent
Facts of the Case
Airports Authority of India (AAI), a Govt. body under Ministry of Civil Aviation, manages airports and handles cargo (including export cargo). The activities include unloading, carting, X-ray, packing, etc. from acceptance to placement on aircraft. Service Tax Department demanded tax for 01.10.2003–31.03.2007: as “Storage & Warehousing Services” up to 09.09.2004. As “Airport Services” from 10.09.2004 onwards (after insertion of Section 65(105)(zzm)). However, AAI argued that “handling of export cargo” is specifically excluded from “cargo handling service” under Section 65(23) of the Finance Act, 1994 and hence not taxable.
Supreme Court Held
The Supreme Court held that the Airport Authority’s handling of export cargo was taxable under the category of airport services with effect from 10-09-2004.The definition of the taxable service is very wide and takes into its fold any kind of service that may be provided to any person by the Airport Authority in any airport. Accordingly, all kinds of services rendered by the Airport Authority in any airport are taxable services and are chargeable to service tax under Section 66 of the Act.
