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TMI Blog2013 (8) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. Shri Jigar Shah, ld. Advocate appearing on behalf of the appellants argued that the Hazira plant of ONGC produces different petroleum products by processing and fractioning raw sour gas and condensate received from Gas Wells of Bassein and Satellite fields of Mumbai Offshore drilling. That the gas and condensate received from the above gas wells is called Sour because it contains Hydrogen Sulphide (H2S) and Carbon Dioxide (CO2). That Raw Crude Oil and associated gases extracted from other oil fields of Mumbai Shore are called 'Sweet Crude/Gases as it does not contain H2S and CO2 and are being processed at Uran Plant of ONGC. The raw crude oil extracted from oil wells other than Bassein & Satellite were also delivered to buyers from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng platforms is admissible to the extent those services are relatable to the dutiable final products. c) It was argued that Sour gas is not at all sold from Bassein and Satellite platforms of Bombay Off-shore. Unlike the sweet products which were also sold directly from the platforms in the case before Hon'ble High Court. The appellants, therefore, pleaded for complete waiver of the duty demanded and penalties imposed. 3. Shri S.K. Mall, ld. A.R., on the other hand, argued that even if it is accepted that no sales of Sour gas is effected at Basse in and Satellite platforms, it cannot be said that the ISD certificates issued to Hazira Plant for taking credit do not contain the element of credit of services taken by the ISD headquarters wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices unless they are used exclusively in or in relation to the manufacture of exempted goods. But the point to note is that merely because the Appellant manufactures exempted goods, that would be no justification to disallow to it the benefit of availing of Cenvat credit on that quantity of input service which is utilised in or in relation to the manufacture of dutiable final products. As we have noted earlier, the definition of the expression 'input service' is cast in broad terms. The expression 'input service' means any service used by the manufacture, whether directly or indirectly or in or in relation to the manufacture of final products. It is impossible to accept the hypothesis that would assert, that input services that are utilize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... error in coming to the conclusion that the Appellant was dis-entitled to the benefit of Cenvat credit in respect of the input services used in or in relation to the manufacture of dutiable final products on the ground, as the Tribunal held, that crude oil which is subject to a further process of manufacture at the Uran plant for the production of dutiable final products is exempted from central excise duty. ONGC admittedly also produces dutiable final products. The production of those dutiable products is possible only on the continuous supply of crude oil. We, however, clarify that as a manufacturer of both dutiable and exempted goods, the Appellant would be required to comply with the discipline and rigour of rule 6 and would be entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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