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'All services rendered by AAI taxable': Supreme Court

Millennium Post Delhi

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New Delhi 01October2025

The Supreme Court has ruled that all services provided by the Airports Authority of India (AAI) at airports are taxable, bringing closure to a longstanding dispute over service tax liability between 2003 and 2007.

- MPOST BUREAU

A bench comprising Justices Pankaj Mithal and P B Varale dismissed AAI's appeal against a tax demand, upholding a March 1, 2017, order of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT). The tribunal had earlier confirmed the service tax obligation on AAI for various services, including handling of export cargo.

In carrying out its statutory functions, AAI oversees a range of activities related to export cargo, such as unloading, carting, X-ray screening, and export packing.

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