TMI Blog2018 (7) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... - Mr. Anil Choudhary, Member (Judicial) Shri Kartikeya Narain (Advocate) for Appellant Shri Gyanendra Kumar Tripathi (Asstt. Commr.) AR for Respondent ORDER Per: Anil Choudhary The issue in this appeal relates to denial of Cenvat credit on Cascade/storage tank/cylinders for Compressed Natural Gas on the ground that they have not been used in the factory premises of the appellant. 2. The appellant is a joint-venture between Gas Authority of India Ltd. (GAIL) and Indian Oil Corporation Ltd. (IOCL), are registered with the Central Excise Department for the manufacture of Compressed Natural Gas or CNG . CNG is classifiable under Tariff Entry No.27112900 of the first Schedule of CETA. The appellant is also eng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... customers. 3. These cascades are specially designed tanks which are used for storage of CNG as well as their transportation. These cascades are also designed for absorbing the difference in pressure of CNG. When the CNG is dispensed through the dispensers, then there is pressure change which is absorbed by these cascades. Under the terms of agreement with HPCL/IOCL, appellant have installed certain equipments at their own cost. Appellant is responsible for maintaining the equipment and related infrastructure in proper working condition. These equipments include dispensers, boosters, cascades, compressors and other associative equipments. Thus these cascades are used for both storage of CNG as well as transportation of CNG. 4. In repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant have also been subject to audit by Revenue from time to time and earlier to this they were also audited in the year 2007. Thus the grounds of invocation of extended period of limitation are not available and as such the show cause notice is hit by limitation. Accordingly, learned counsel prays for allowing the appeal with appropriate relief. 5. The learned A.R. for Revenue have relied on the impugned order. 6. Having considered the rival contentions, I find that the manufacture of CNG is not possible without the use of the cascades in question which acts as the storage tank for the CNG upon its manufacture. Either the appellant can sell CNG from their factory through dispensers or through a system of pipelines for transportation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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