TMI Blog2009 (5) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... all the three companies have to be done together in view of the technological necessity, the transportation of the goods belonging to other oil companies is necessarily related to their business activity of the appellant and by virtue of the definition of input service, it can be called as input service for providing the output service of storage and warehousing. In our view prima facie the appellants have a strong case on merits. – stay granted - ST/19/2008 - 899/2009 - Dated:- 27-5-2009 - S/Shri T.K. Jayaraman, Member (T) and M.V. Ravindran, Member (J) Shri G. Shivadas, Advocate, for the Appellant. Shri P. Devaraj, JDR, for the Respondent. [Order per: T. K. Jayaraman, Member (T)]. - In terms of the impugned order, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of their output service tax under "Storage and warehousing" Revenue proceeded against the appellants on the ground that they are not entitled to take credit of the service tax paid on the transportation of their own goods. The Commissioner has denied the said input service tax credit on the following grounds. According to him "if input service is not used for providing an output service, it will not qualify as input service at all". The argument that the transportation of petroleum products on their own account (M/s. HPCL) still qualify in the inclusion clause covering activities relating to business such as accounting auditing, financing etc. has no meaning for the reason that the receipt of petroleum products on their own account is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l necessity. It has been categorically stated that MRPL would not allow the transportation if any one of the oil companies does not lift their stock. In other words in view of the huge pipeline, the transportation of the goods belonging to all the three oil companies have to be done together. 6. Even the Commissioner himself has stated that the transportation of the goods belonging to the appellants in the pipeline is related to their business. IF that is so, it is surely related to their business activity. It is not disputed that the appellants provide service of storage and warehousing to the other oil companies. In that case, that is also a part of their business. As the transportation of goods belonging to all the three companies have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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