Supreme Court dismisses Airports Authority of India appeal on export cargo service tax liability.
SC UPHOLDS SERVICE TAX ON AIRPORTS AUTHORITY EXPORT CARGO HANDLING
CASE SUMMARY – The Supreme Court in Airports Authority of India vs. Commissioner of Service Tax held that services related to export cargo handling by the Airports Authority of India are taxable under Section 65(105)(zzm) of the Finance Act, 1994, despite the exclusion of export cargo from “cargo handling service” in Section 65(23). The Court emphasized that Section 65 merely defines terms and does not govern taxability, which is determined by Section 66, the charging provision. Since sub-clause (zzm) covers any service provided by Airports Authority in airports, AAI’s export cargo services after 10 September 2004 are liable to service tax. Appeal dismissed.
| ASPECTS | DETAILS |
| Case Title | Airports Authority of India vs. Commissioner of Service Tax |
| Introduction | Supreme Court of India judgment (23 Sept 2025) addressing service tax liability on export cargo handling by Airports Authority of India (AAI). |
| Factual Background | AAI manages airports and handles export cargo services. Commissioner of Service Tax confirmed service tax for 01.10.2003–31.03.2007 under “Storage & Warehousing” (till 09.09.2004) and “Airport Services” (from 10.09.2004). CESTAT upheld this. |
| Legal Issues | Whether handling of export cargo by AAI is exempt from service tax under Section 65(23) of Finance Act, 1994, considering exclusion of export cargo from “cargo handling service.” |
| Applicable Law |
|
| Analysis | Supreme Court held Section 65(23) only defines terms and exclusion of export cargo from “cargo handling service” does not exempt it from tax. Section 66 with 65(105)(zzm) levies tax on any service by Airports Authority in an airport, including export cargo handling after 10.09.2004. |
| Conclusion | Appeal dismissed. Services rendered by AAI for export cargo are taxable under Section 65(105)(zzm) effective 10.09.2004. |
| Current Scenario | Confirms broad ambit of service tax on airport services; reinforces that exclusions in definitions do not override explicit charging provisions. |
“Exclusion from a definition cannot override the charging section imposing service tax.”
SOURCE – SUPREME COURT OF INDIA
ALSO READ – SC REFORMS GOVERNANCE OF ALL INDIA FOOTBALL FEDERATION
Discover powerful Latin Maxims and Legal Glossary and simplify complex legal terms in seconds.The LawGist ensures exam success with quality Blogs and Articles — Top Legal Picks (TLP), Current Affairs, Recent Supreme Court Judgments, and Step into the world of justice with Courtroom Chronicles. Backed by trusted resources and videos, The LawGist is every Professionals and Aspirant’s first choice. Discover more at thelawgist.org.
