TMI Blog2016 (3) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... porting the CNG to DBS, wherein the same are filled by using compressors into the vehicles. These cascades are only transporting the CNG which has already come into existence as a manufactured product and is a marketable commodity. The argument of the learned Counsel that the CNG needs recompression into DNS in order to fill the product into vehicle is without any merits inasmuch CNG is already a marketable commodity, and the activity of recompression is neither incidental nor ancillary for manufacture of CNG at DBS as the recompression is of CNG. Secondly, reliance was placed on the Chapter Note 5 to the Chapter 27. The said Chapter Note will not be of any help to the appellant's case as the said Chapter Note talks about the compression ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing of Compressed Natural Gas (CNG). The appellants have been availing CENVAT Credit on capital goods namely, compressor, cascades, dispenser spares in terms of relevant cenvat Credit Rules. The appellant availed CENVAT Credit of duty paid such as goods, cascades which are used for transportation of CNG to their Daughter Booster Stations (DBS) for eventual sale during the period March, 01 to Dec, 04. Revenue authorities were of the view that the CENVAT Credit cannot be availed on cascade without bottle or cylinders which are mounted on vehicles as the DBS cannot be considered as manufacturing premises or factory. A show-cause notice was issued for demand of the ineligible CENVAT Credit availed during the period by invoking the extended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (even if it does not involve liquefaction), for the purpose of marketing, it is Compressed Natural Gas (CNG), for use as a fuel or for any other purpose, shall amount to manufacture and submit that unless the CNG is further re-compressed in DBS, the product could not be filled in the vehicles hence will not attain marketability. He would submit that compression of CNG is considered as manufacturing activity is not disputed and re-compression would also include compression. 3.1 It is his further submission that Notification No. 35/2001-CE(NT) dated 26.6.2001 as amended provides for issuance of a centralized registration wherein the appellant had got these DBS registrations as factory premises for dispensing the CNG. He would also draw o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st appellate authority. 5. We have considered the submissions made by both sides and perused the records. 5.1 The issue involved in this case is whether the appellants are eligible to avail CENVAT Credit on cascades, various compressors installed at DBS for dispensing the CNG into the vehicles or otherwise. Undisputed facts are that the cascades are used by the appellant to transport CNG from Mother Station (MS) to Daughter Booster Stations (DBS). The compressors which are installed at DBS are used for the re-compression of CNG in order to achieve the optimum pressure for dispensing the CNG into the vehicles. It is the case of the appellant that DBS are installed at factory premises while the Revenue authorities are stating that DBS t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will not be of any help to the appellant's case as the said Chapter Note talks about the compression of natural gas for the purpose of marketing the CNG would amount to manufacture, in the case in hand, the compression of natural gas takes place at mother station. At DBS the recompression of CNG does not bring into existence any new product which is distinct. 5.3 The reliance placed by the learned Counsel on the case of Vikram Cement and Birla Pericalse (supra) will also be of no help as in that cases the issue was regarding the use of capital goods and dumper used for the purpose of transportation of inputs and not for the transportation of already finished goods. The reliance placed by the learned Counsel on the case of Deepak Fert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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