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2016 (5) TMI 87

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..... ne for central excise purpose as the place of delivery is pre determined as delivery point of pipeline at the recipient’s end. The appellants are selling chlorine and upon delivery of chlorine through pipeline at the buyers end, the transaction is concluded. The pipeline is laid and owned by the appellants. The said pipeline is used for transport and sale of chlorine to M/s. Gwalior Chemical Indus .....

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..... ondent : Shri Satyaveer Singh, DR ORDER PER SHRI B. RAVICHANDRAN: These are two appeals involving identical issues of service tax demand and hence are taken up together for disposal. The appellants are engaged in the manufacture of various excisable products including liquid chlorine. They have entered into an agreement with M/s. Gwalior Chemical Industries Limited for supply of chl .....

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..... h pipeline is included in their assessable value for Central excise duty. As such no service tax can be confirmed on the per metric tonne charge of transportation cost through pipeline. 3. The Ld. AR submitted that the valuation for central excise purpose is not relevant to determine the tax liability under the provisions of Finance Act, 1994. The appellants have provided the services of transp .....

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..... supplied through pipeline. The admitted facts of the case are that the appellant is manufacturing and selling chlorine through pipeline to M/s. Gwalior Chemical Industries Limited. The place of delivery is pre determined as delivery point of pipeline at the recipient s end. In other words the sale and delivery of chlorine happens on the pipeline delivery point of the recipient s side. In this con .....

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..... ation for sale and to discharge central excise duty. As such we find no justifiable legal basis to sustain any service tax liability on the appellants in the above transaction. 5. Considering above discussion and findings we allow both the appeals filed by the appellant by setting aside the impugned order. [Operative part of the order pronounced in the open Court] - - TaxTMI - TMITax - .....

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