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2011 (3) TMI 235 - AT - Service TaxDemand - Cenvat credit - Storage and Warehousing - input services related to output service - Rule 3 of Cenvat Credit Rules, 2004 (CCR) - Since the pipeline cannot be operated unless HPCL’s share of line fill quantity is pumped into the pipeline for pushing the batches of BPCL and IOCL for receipt into the Hassan terminal for warehousing, transportation of HPCL quantity forms an integral part of the output service - It was inevitable that HPCL also incurred cost of transportation on its share and Service Tax thereon - The freight charges for the transportation through pipeline and the Service Tax thereon were paid by the respective companies in respect of the petroleum products received by each - If the pipeline is filled to capacity of any particular petroleum product with shares belonging to the three companies in mutually agreed proportion, consignments meant for different oil companies can possibly be exclusively transported keeping the pipeline filled to capacity before and after the transfer - Hence, decided in the favour of the assessee by way of remand
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