Section 66 - The Legal Chamber

The Supreme Court upheld the service tax levy on services provided by the Airports Authority of India for handling export cargo. It ruled that while such handling is excluded from the definition of "cargo handling service," it squarely falls under the broader, specific taxable service category of "Airport Services" as defined under Section 65(105)(zzm) of the Finance Act, 1994. Facts Of The Case: The Airports Authority of India (AAI), a statutory body under the Ministry of Civil Aviation, was engaged in handling export cargo at various airports. This involved a range of activities such as unloading, carting, X-ray screening, and export packing from the point of accepting the cargo until it was loaded onto an aircraft. The tax authorities confirmed a service tax liability on these s...

The Supreme Court of India held that demand notices for misdeclaration of goods under Section 66 of the Railways Act, 1989, can be raised by railway authorities even after delivery of goods. The Court clarified that Section 66 does not specify a stage for imposing such charges , distinguishing it from Sections 73 and 78, which relate to punitive charges for overloading and require recovery before delivery. The Court also stated that the High Court's reliance on Jagjit Cotton Textile Mills v. Chief Commercial Superintendent N.R. was erroneous as that case pertained to overloading and Section 54, not misdeclaration under Section 66. Facts Of The Case: The case involves appeals filed by the Union of India against M/s Kamakhya Transport Pvt. Ltd. and others, stemming from a judgment ...

Tag: Section 66

Supreme Court Clarifies: No Service Tax Exemption for Handling Export Cargo at Airports

Supreme Court :No Time Bar for Railways to Recover Penalty on Misdeclared Cargo Under Section 66 of Railways Act