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TMI Blog2009 (5) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... per: T. K. Jayaraman, Member (T)]. - In terms of the impugned order, the appellants are required to pre-deposit the following sums: (1) Rs. 2,59,97,348/- duty. (2) Penalty of Rs. 100/- per day under Section 76 till 18-4-2006 and Rs. 200/- per day or 2% after 18-4-2006. (3) Interest under Section 75. The above amount represents the Cenvat credit disallowed. We heard both sides. 2. The appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the appellants for the operation of Mangalore-Hasan-Bangalore pipeline with construction of oil terminal by the appellants at Hasan. PMHB is also registered assessee and are charging service tax for the transportation of the oil through pipelines. The appellants have reimbursed the service tax charged by PMHB and have taken Cenvat credit of the same for payment of their output service tax und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore as per the definition of input service given in the Cenvat Credit Rules, he held that the transportation of petroleum products through pipelines on their own account does not constitute 'input service' relating to the output service of storage warehousing in respect of petroleum products received on behalf of M/s. IOCL and BPCL. In view of the above, the Commissioner has denied the serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tput service provided to the other companies. 5. On a very careful consideration of the issue we observe the following: (1) The transportation of goods belonging to all the three oil companies is a technological necessity. It has been categorically stated that MRPL would not allow the transportation if any one of the oil companies does not lift their stock. In other words in view of the huge pip ..... X X X X Extracts X X X X X X X X Extracts X X X X
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