TMI Blog2010 (8) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... he Goods through pipeline or other conduit service" as defined under Section 65(105)(zzz) of Finance Act, 1994 with effect from 16-6-05 - appellant got themselves registered with Service Tax Department and started paying service tax in respect of their services under the category - Revenue is of the view that as per GTA agreement the shipper is deemed to have custody of the gas prior to its delivery to the transporter at the entry point, and after its re-delivery by the transporter at any exit point - Held that: - appellants are not having any warehouse, are not raising invoice on behalf of the suppliers, are not responsible for payment of the amount to their supplier - appellants are only in transportation of the gas through pipe line - co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for the first time in respect of services falling under the category of "Transport of the Goods through pipeline or other conduit service" as defined under Section 65(105)(zzz) of Finance Act, 1994 with effect from 16-6-05. The appellant got themselves registered with Service Tax Department and started paying service tax in respect of their services under the above category. 3. However, the dispute rebates to the period prior to introduction of the above services under the service tax net w.e.f. 16-6-05. Revenue is of the view that as per GTA agreement the shipper is deemed to have custody of the gas prior to its delivery to the transporter at the entry point, and after its re-delivery by the transporter at any exit point. The tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort through pipe line to the destination and hand over the same at exit point. (iii) That the scope and ambit of transportation of goods through pipe line services stand clarified by Board vide its Circular No. B1/6/2005-TRU, dt. 27-7-05, which is as under : "Transportation of goods, other than water, through pipeline or conduit is generally employed to transport petroleum and other petroleum products, natural gas, LPG, chemicals, coal slurry and other similar products. Such transport services are liable to service tax under sub-clause (zzz) of section 65(105) of the Finance Act, 1994. Consideration for the said transportation service provided may be payable periodically or from time to time. The service provider is required to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring Forwarding Agent given in Section 65(25) of Finance Act, 1994 is wide enough to include all activities which have a bearing on Clearing Forwarding operations and the expressions directly or indirectly connected with "in relation to" and "in any manner" makes the definition very open-ended/wide. He examined various terms of the gas transmission agreement entered into by the assessee with their customers as detailed in Para 38.5 of his order and conclude that the transportation task undertaken by the appellant is only incidental and ancillary to main tasks of receipt, custody storing and delivery of gas. He, however, observed that there has to be a basic difference in the Clearing Forwarding operations for solid and gas. Clearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incipal as their relationship with the supplier is principle to principle basis on the ground that between entry point and exit point, it is the sole responsibility of the assessee to account for the gas and to provide essential service like security, delivery, re-delivery. Accordingly, he has concluded that from buyer's perspective, the gas bought is as good as warehoused, because as and when and in whatever quantity buyer wants, GSPL delivers the desired quantity of gas at the appointed day. 7. He also did not find favour with the assessee's contention that as the service was introduced w.e.f. 16-6-05, the same cannot be held to be covered by the earlier series, in view of the law declared by various decisions. 8. As regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs to stand. Accordingly other points canvassed by both parties and citations relied upon by them do not call for determination. The Appellant therefore succeeds and Appeal is allowed, setting aside the order of adjudication." 10. Though we find that the above decision relied upon by the appellant before adjudicating authority, he has failed to assign any reason for not following the same. Admittedly, the service in question was introduced w.e.f. 16-6-05 and the appellant has been paying on the same from the said date onwards. Tribunal, in number of matters, has held that when a new service is introduced, for the purpose of levy of service tax from a specified date, it has to be held that the said service was not liable to tax prior ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
