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2018 (2) TMI 1252 - AT - Service TaxTransportation service through pipeline / conduit - Department took the view that delivery of naphtha from appellant s terminal to NFCL storage tanks through pipeline amounts to providing taxable services under the category transportation of goods through pipeline and that therefore the amount of ₹ 135/- per MT collected for this purpose will require to suffer service tax, for the period January 2005 to February 2006. Held that: - There is an understanding that in case of any loss of goods during the transportation, it is the appellants who bear the loss and in fact have even paid excise duty on the loss quantity value, so also under the agreement, the sale by the appellant to NFCL is complete only when naphtha reaches the storage tanks. The appellant is not required to discharge excise duty liability on the sale of naphtha made to NFCL by availing N/N. 6/2002-CE. Just because there is no excise duty liability in respect of the impugned clearances, the attempt of the department to collect service tax in respect of throughput charges, in our opinion, will not pass muster. Reliance placed in the case of M/s. Grasim Industries Ltd. Versus C.C.E. Indore [2016 (5) TMI 87 - CESTAT NEW DELHI], where it was held that 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.
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