Case Law Details
M/s. MCC PTA India Corp. Pvt. Ltd. Vs ACIT (ITAT Kolkata)
Section 35 of Major Ports Act 1963 empowers the Board to execute works providing appliances which includes wharves, quays, docks, stages, jetties, piers and other works within or without the port limits and also moorings and cranes, scales and all other necessary needs and appliances for loading and unloading. Section 37 explains that the board may issue notification declaring any dock, berth, wharves, quays, docks, stages, jetties, piers is ready for receiving, landing and shipping goods or passengers after obtaining approval of Collector of Customs. Therefore, it is clear from the above that there is no demarcated space. Further, we find the scale of rates approved by tariff authority for major ports published in gazette notification no. 30 dt. 15-02-2011, placed at page-96 of the paper book, wherein we noticed charges on break bulk and bulk cargo in Part-I relevant to wharfage. The said rates as we noticed are fixed as per tonne applicable to different categories of cargo i.e. for liquid/gas and it is clear that no fixed rate levied or recoverable on all cargo/container landed or shipped or transshipped within the port limit and approaches or passing through the declared landing stage of the port and, thus, the charges collected by the ‘KPT ‘is not a rent attracting the provision u/section 194I of the Act.
Hon’ble Supreme Court in the case of Japan Airlines pleases to explain the scope of applicability of section 194I of the Act and affirmed the decision of the Hon’ble High Court of Madras in the case of Singapore Airlines Ltd reported in 358 ITR 237 (Mad.), which held utilization of airport for providing the facility of landing and takeoff of airplanes and also for parking facility is not used of land.
We find force in the arguments of the ld.AR and in view of the discussion made herein above, we hold that the wharfage charges paid to the KPT is not rent and no TDS is liable to be deducted under the provisions of section 194I of the Act.
FULL TEXT OF THE ITAT JUDGMENT
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