TMI Blog2018 (11) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... ) TMI 854 - CESTAT NEW DELHI]. The facts in that are slightly different inasmuch as the delivery of gases was not through pipe lines, but through tankers. We find that the ratio of such decision can be applied to the present case - it was held in the case that fixed facility charges are part of transaction value for the purpose of Central Excise duty The issue regarding inclusion of fixed facility charges for transportation of gases through pipe lines was clarified by CBEC - It was clarified that such fixed facility charges are to form part of the transaction value for the purposes of Central Excise duty. There is no justification for demand of service tax - Appeal allowed - decided in favor of appellant. - S.T.Appeal No.21/08 - FO/A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ategory of transport of goods through pipe lines or other conduit defined under Section 65 (105)(zzz) of the Finance Act, 1994. Accordingly, after issue of showcause notice, the impugned order was passed ordering payment of service tax along with interest and penalty under various Sections of the Finance Act, 1994. This order is under challenge in the present appeal. 3. With the above background, we heard Shri N.K.Kothari, ld.C.A. assisted by Ms.Saheli Dasgupta, Manager (Taxation) of the Appellant Company and Shri S.S.Chattopadhyay, ld.D.R. on behalf of the Revenue. 4. The arguments advanced on behalf of the appellant are summarized below : (i) For the supply of gas through pipe lines to M/s Tata Steel Ltd., the appellant is payi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 07.01.2014 addressed to the Commissioner of Central Excise, Bhubaneswar II Commissionerate, on the above subject. In this connection, it is to inform you that in this case the fixed facility charges recovered from the buyer would be a part of transaction value for the purpose of levy of Central Excise duty, as per your information documents submitted on this issue. Thanking you, Yours faithfully, Sd/ (B.K.Nayak) Assistant Commissioner (Tech), Central Excise, Customs S.Tax, Bhubaneswar II (iii) A similar dispute came up before the Delhi Bench of the Tribunal in the appellant s plant situated in Rajasthan. The Delhi Bench vide its Final Order Nos.57664-57665/2017 dated 01.11.2017 took t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tween the two factories. It is submitted on behalf of the appellant that all the expenses including portion of the facility charges attributable to gas upto the delivery point i.e. boundary wall, is includiable in the assessable value for payment of service tax. Accordingly, it has been argued that no service tax liability arises for the facility services, which is already included in the assessable value. It is further submitted that for the portion of the facility charges attributable to supply of gases within the factory premises of the customers, the service tax stands already paid. We find that an identical dispute pertaining to the appellant s own other unit situated in Rajasthan, came up before Delhi Bench of the Tribunal. The facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For such activity, they are collecting fixed facility charges apart from the sale consideration for the gas. Admittedly, the clarification dated 10.11.2014 issued by the Board on similar set of facts, as well as, the clarification dated 24.04.2014 issued in respect of appellant s unit in Orissa are applicable to the present dispute. 5. Accordingly, we hold that the impugned orders are without merit. The same are set aside and the appeals are allowed. 8. The issue regarding inclusion of fixed facility charges for transportation of gases through pipe lines was clarified by CBEC in respect of M/s Inox Air Products Ltd., Bombay. It was clarified that such fixed facility charges are to form part of the transaction value for the purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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