9911796707
TMI Blog2012 (6) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... aken Service Tax registration at different places, prima facie, they are eligible to take credit in respect of capital goods received at Secondary Switching area, station at Vaghodia is a technical necessity so as to boost the pressure of the gas for further transportation to the ultimate place. Inasmuch as the said Vaghodia station is also a part of the same M/s. GAIL, who are discharging their Service Tax liability on the entire activity of transportation of the gas through pipeline, appellant is entitled to avail Cenvat Credit of duty paid on the capital goods or input services availed in respect of their Vaghodia station, pre-deposit of duty, interest and penalty waived and Stay Petition allowed - ST/315/2011 - M/1051/2011-WZB/AHD - Da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther alleged that M/s. GAIL had taken the Cenvat Credit in respect of capital goods installed at M/s. GAIL, Vaghodia and input services availed at Vaghodia. The notice alleged that inasmuch as the capital goods were not installed at Hazira and the input services were not availed at Hazira, the credit so availed by Hazira in respect of capital goods installed at Vaghodia and services availed at Vaghodia, was not in accordance with the provisions of Cenvat Credit Rules. Accordingly, the same was proposed to be confirmed against the appellant along with interest. The notice stand culminated into impugned order passed by the Commissioner, confirming duty interest and imposing penalty. 4. It is seen that M/s. GAIL Hazira was receiving gas f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the gas in pipeline. In such a scenario, submits the applicant that credit of capital goods installed at said station and the services availed in respect of the same are required to be considered as input services for M/s. GAIL, who is a provider of output service. 6. Ld. Advocate appearing for the appellant has also drawn our attention to the observations made by Tribunal in the case of BSNL v. CCE, Salem - 2009 (14) S.T.R. 674 (Tri. - Chennai). In the said case, the Cenvat Credit availed at Salem by M/s. BSNL was sought to be denied on the ground that the said capital goods were installed at other places which were Secondary Switching area. Inasmuch as the Secondary Switching area did not receive the capital goods, the credit a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said Vaghodia station is also a part of the same M/s. GAIL, who are discharging their Service Tax liability on the entire activity of transportation of the gas through pipeline, we are of the view that, prima facie, the appellant is entitled to avail Cenvat Credit of duty paid on the capital goods or input services availed in respect of their Vaghodia station. The ratio of the decisions referred supra, prima facie, covers the case of appellant in their favour. Accordingly, we dispense with the condition of pre-deposit of duty, interest and penalty and allow the Stay Petition unconditionally. 8. Early Hearing application for listing the Stay Petition also gets disposed off. (Pronounced in Court on 17-6-2011) - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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