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Informist, Tuesday, Sept. 23, 2025

 

NEW DELHI - The Supreme Court Tuesday upheld the liability of service tax on Airports Authority of India for handling "export cargo" and said the same was under the category of "airport services" for taxation from Sept. 10, 2004. The apex court dismissed the Airports Authority of India's argument that the classification of their "export cargo" handling will be under the category of "cargo handling service" and not "airport services".  

 

The bench of Justice Pankaj Mithal and Justice P.B. Varale said the Customs, Excise and Service Tax Appellate Tribunal has not erred in taxing services in relation to Airports Authority's "export cargo" handling under the category of "airport services". It upheld the appellate tribunal's 2017 ruling that while cargo handling may be specific with reference to services rendered in connection with cargo, "airport services" is also specific to the extent that this service can be rendered only by airports authority or any other person in a designated airport or a civil enclave. 

 

Airports Authority is engaged in managing various airports across India. With effect from Sept. 10, 2004, the government had introduced the category of "airport services" as a tax entry for service tax that included service provided to any person, by the airports authority or by any other person, in any airport or a civil enclave. The petitioner said "cargo handling service" is more specific than "airport service" and its export cargo handling should be taxed under the former category.

 

The petitioner said it was mainly engaged in handling cargo which involves a score of connected activities such as unloading, carting, X-ray and unitisation. From the time a cargo is accepted from the exporter till it is put on aircraft, a host of activities were undertaken by the appellant and it all related to cargo handling services, said the petitioner.  End 

 

Reported by Surya Tripathi

Edited by Subhojit Sarkar

 

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