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2023 (4) TMI 713 - AT - Service TaxCENVAT Credit - transportation charges paid to GSPL - trading activity(output service) - service of gas through pipeline used for trading activity (input service or not) - demand relating to utilization of said credit for payment of service tax - extended period of limitation - HELD THAT:- It is seen that the respondents are purchasing gas from GSPC and receiving the same through the network of pipeline of GSPL. The respondents are paying service tax on the services of transportation of gas from GSPC to the respondent’s premises. The said gas is sold by the respondent to various customers and supplied through the network of pipelines. It is quite clear that the respondents are engaged in the trading activity i.e. buying and selling of gas. The respondents are also involved in a. Installation and administration charges of gas pipe lines up to the end of customers. b. Annual Maintenance Charges of gas pipelines. c. Service charges received for sales promotion for sale of gas at CNG pumps tax. The term “business” would apply only to the business activities which are of the nature which become liable to excise duty or service tax. The term activity related to business has to be read in relation to the activities which are related to the business which is of the nature which is taxable either under excise or under service tax. Moreover, the service of transportation of gas from the supplier of gas namely GSPC to the respondent premises is used to the fullest extent in the trading of gas. The trading of gas is not an activity leviable to service tax and therefore even in terms of Rule 6(1) of the CCR, 2004 no credit of the same would be admissible. The Commissioner has relied on the decision of the Tribunal in the case of CST, DELHI VERSUS CONVERGYS INDIA PVT. LTD. [2009 (5) TMI 50 - CESTAT, NEW DELHI] the commissioner has observed that the value of transportation is recovered from the customers. It is apparent that the value of transportation is recovered from the customers who buy the gas from the respondent. The value of transportation of gas is included in the cost of the gas sold by the respondent - In the instant case the facts are different and therefore the decision of Convergys India Pvt. Ltd has no application. It is seen that the impugned order has not examined the issue of limitation and second demand relating to utilization of said credit for payment of service tax. The matter is remanded to the Commissioner for fresh adjudication.
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