9911796707
TMI Blog2012 (6) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... pital goods as also credit of tax paid on input services. In addition, penalty of identical amount stand imposed upon the applicant. 2. As per the allegations made in the Show Cause Notice issued on 11-5-10, the applicant M/s. Gas Authority of India Ltd. (M/s. GAIL), Hazira, was providing output service of transport of natural gas through pipeline to local consumers as also consumer based at far off places through Hazira-Vijaypur-Jagdishpur pipeline. That they had a compressor unit at Hazira to pump the natural gas in the pipeline and another compressor station at Vaghodia, Vadodara for further pumping the Natural gas. That in the long distance gas supply through pipeline, compressor stations are technical requirement and are set up t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th sides, we find that Modvat Credit stand denied to Hazira station on the ground that the capital goods were installed and services were availed by their Vaghodia station. It is the appellant's contention that Vaghodia station is not making any independent supply to its customers. The said station is only meant for boosting the pressure of gas for onward supply to Vijaypur. Inasmuch as no Service Tax is being paid by the Vaghodia station, the availment of credit at the said station is of no use to them. Vaghodia station is primarily for boosting the pressure for onward supply. In the absence of said Vaghodia station, the pressure and volume of the gas cannot be maintained in the pipeline and the same will have the impact on efficiency of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lem - 2011 (21) S.T.R. 586 (Tri. - Chennai), wherein by taking note of an identical situation and the fact that M/s. BSNL, as a whole, is a service tax assessee, though its different has taken Service Tax registration at different places, prima facie, they are eligible to take credit in respect of capital goods received at Secondary Switching area, the Bench observed that they have a prima facie case so as to waive the requirement of pre-deposit. Similarly, in the case of HPCL v. CCE, Mangalore - 2010 (17) S.T.R. 426 (Tri. - Bang), dealing with an identical situation, unconditional stay was granted. 7. After hearing the ld. SDR and on going through the impugned order, we find that it is admittedly M/s. GAIL, who are liable to pay the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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