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TMI Blog2010 (1) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... . Murthy, Member (T) and Ashok Jindal, Member (J) REPRESENTED BY: S/Shri S.N. Soparkar, Sr. Advocate and Sujit Ghosh, C.A., for the Appellant. Shri Sameer Chitkara, SDR, for the Respondent. [Order per: Ashok Jindal, Member (J)]. - This stay application is directed against the order of imposition of Service tax, interest and penalty on the applicant (M/s. Gujarat State Petronet Ltd., for short GSPL, a State Govt. under taking), under the category of Clearing & Forwarding agent. 2. The applicants are engaged in providing taxable service falling under the category of "Transport of Goods through pipeline or other conduit service". Transportation of natural gas through pipeline was introduced as taxable service w.e.f. 16-6-05 and accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein in identical facts, it was held by the Hon'ble Tribunal that transport through pipeline was brought to ambit of tax w.e.f. 16-6-05, taxation thereof prior to enactment of law inconceivable. He further submitted that this Tribunal in various cases has held that if subsequent entry was covered by earlier entry, there was no reason or scope to create present entry. Creation of new entries not by way of bifurcation of earlier entry inasmuch as earlier entry relating to advertisement remains unchanged without any change in tax rate. Introduction of new tariff entry implies that coverage in new tariff for the purpose of tax was an area not covered by earlier entry. In the case of M/s. Gujarat Chem. Port Terminal Co. Ltd. v. CCE as reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the said Agreement nails the responsibility of smooth movement of goods on the appellant in following terms: (5) The company shall not be liable for any short delivery of or damages to the said products or any part thereof after delivery of the said products is taken by the Consignment Stockists or for any delay in supply of the said products caused by any circumstances beyond its control. The Consignment Stockist, however, accepts full responsibility for any demurrage which may be incurred in respect of the Consignments of the said products despatched by rail, road, air or water provided it is not due to the fault of the Company." 4.1 He further relied upon the clarification on Service tax vide Ministry of Finance (Deptt. of Revenue)' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service tax, a single composite service is to be classified under any one of the specified taxable ser vices. 3.2 For the purpose of classification of a service covering number of separate services, a view has to be taken as to whether an individual service is merely a component of the overall supply or is itself a distinct and independent supply i.e., whether the component is merely ancillary to the principal supply or the component can be considered as separate taxable service in its own right. A service, which does not constitute for a customer an aim in itself but a means of better enjoying the principal supply, is considered as a supply ancillary to the principal supply. 3.3 Section 65A states the principles for classification of taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther, he reiterated the impugned order. 5. After hearing both sides, we find that the facts of this case are identical to the facts in the case of M/s. Oil India Ltd. (supra). Furthermore, this Tribunal in various cases has held that "effect of levy of Service tax on new taxable service, activity made liable to Service tax from particular date, such activity not taxable under pre existing service category when definition of earlier categories not changed. Moreover, we find that the service rendered by The applicants of the transportation of natural gas through pipeline, cannot be termed as Clearing and Forwarding Agent. Furthermore, reliance placed by the learned SDR are not convincing and applicable to the instant case. Accordingly, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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