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2016 (5) TMI 87 - AT - Service TaxDemand of Service tax - Transport of gas through pipeline - Section 65(105)(zzz) of the Finance Act 1994 - Supply of chlorine through pipeline - Held that:- the appellants have rightly calculated the cost of transportation through pipeline in their assessable value of chlorine 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 Industries Limited. So, it is found that there is no services provider and service recipient with reference to transport of goods through pipeline for charging service tax. The transport of chlorine through pipeline is done by the appellant in their own account and the delivery on sale is made to the buyer. The transportation charges are included as a consideration for sale and to discharge central excise duty. Therefore, no justifiable legal basis found to sustain any service tax liability on the appellants. - Decided in favour of appellant
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