9911796707
TMI Blog2018 (7) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... ndian 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 engaged in the distribution of 'CNG' at Agra and Lucknow. The appellant required cascades for manufacture of CNG. Cascades are system of storage for compressed gas where many storage tanks/cylinders are kept in close proximity and are connected to each other, the purpose of which is to stabilize and maintain the pressure in the tanks while pumping the compressed gas out of them for filling the same in the vehicles, etc. Cascades are used as the primary mode of storing CNG. During investigation, sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rastructure 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 reply to the SCN dated 24th March, 2011, for the period 2005-06 and 2006-07 invoking the extended period of limitation, the appellant had urged that these cascades are in the nature of storage tank and therefore fall in the definition of capital goods as defined in Rule 2(a)(A)(vii) wherein capital goods means, also storage tank used in the factory of manufacturer of the final product. It was also urged by the appellant that these cascades have been used in the factory for manufacture of final products - CN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible 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 of CNG to the daughter stations or retail outlets, or as in the present case they are filling the CNG in 'Light Commercial Vehicle' mounted cascades which are filled inside the factory directly upon manufactures and as such are used both for storage of the manufactured CNG and for its transportation to the daughter stations or the retail outlet. Thus under the facts and circumstances, without usage of these movable or lorry mounted cascades the appellant cannot manufacture and cleared their output namely CN ..... X X X X Extracts X X X X X X X X Extracts X X X X
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