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TMI Blog2013 (9) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... ehicle, at the online mother station and transported to various daughter stations from where CNG is filled in various vehicles through dispenser - In terms of CBEC Circular No. 875/13/2008-CX dated 16.10.2008, the measuring device should be on the compressor installed on the online station. The appellant has set up the measuring device for disposal of CNG Gas at the Dispenser in respect of online station and mass flow meter in respect of online Mother stations. As per Rule 9 of the Central Excise Rules, 2002 read with above referred CBEC Circular dated 16.10.2008, in the case CNG manufacturer, Central Excise Registration is to be given only in respect of those premises where CNG is actually manufactured i.e., where compressor is installed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Limited at entry point, Hazira and gets delivery at exit point, City Station (CGS), Ahmedabad for distribution to various filling stations at Ahmedabad. The compressed CNG at high pressure, from the stationery Cascade is transmitted into the dispenser through pipeline from where the CNG is dispensed in the vehicles. CNG is also filled in Mobile cascades mounted on the vehicle, at the online mother station and transported to various daughter stations from where CNG is filled in various vehicles through dispenser. The capital goods are installed at the filing stations as under:- Sr. No. Location of installation of capital goods Description of capital goods Status 1 Adani Energy Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant has installed one pipeline from the compressor at the CNG stations namely Sabarmati, Paldi and Memnagar and attached to the dispenser where the CNG is dispensed and filled in the AMTS buses. It was found that there was no device fitted on the CNG online stations so as to ascertain how much natural gas is received and how much compressed gas has been manufactured. In terms of CBEC Circular No. 875/13/2008-CX dated 16.10.2008, the measuring device should be on the compressor installed on the online station. The appellant has set up the measuring device for disposal of CNG Gas at the Dispenser in respect of online station and mass flow meter in respect of online Mother stations. As per Rule 9 of the Central Excise Rules, 2002 read w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the due process of law, concurred with the adjudicating authority and upheld the order in original. 5. Learned counsel would take me through the order in original, show cause notice and the facts of the case. He would also take me through the CBEC Circular No. 875/13/2008-CX dated 16.10.2008 and submit that the registration which has been denied to the appellants units are not correct. It is his submission that these premises are leased out to the appellant and in these premises dispensing of CNG takes place through a pipeline where in meters are affixed to ascertain the quantity of CNG which has been dispensed. It is his submission that these pipelines are directly attached to the compressors where the registrations are being given. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto by the appellant with AMTS. In order to fulfil such contractual obligations, they extended pipelines from the compressing station for transporting the CNG. The Revenues case is that the place where the CNG is dispensed to the AMTS buses does not have compressor and hence they cannot be granted registration certificate. 8. I find that there is no merits in the arguments raised by the lower authorities for cancelling the registration to the following premises AMTS Sabarmati Depo, Mehasana Highway, Acher Sabarmati, AMTS Bus Station, Paldi Cross Road, Paldi and AMTS Depo, Near Helmat Circle, Memnagar. I find that the Board Circular date 16.10.2008, in paragraph -3 specifically indicated as under:- 3. Availability of Cenvat credit :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable on CNG is calculated on the quantity of CNG dispensed/sold from the dispensers installed at the various CNG stations in a day, which is presumed to be the production of the CNG by the compressors for that day. It has also been noticed that in many cases the CNG stations (from where CNG is sold to vehicles) are owned by an entity, which is different from the owner of the compression facility. However, this practice is not in conformity with the legal provisions. Section 3 of the Central Excise Act, 1944 read with rule 4 of the Central Excise Rules, 2002, requires a manufacturer to pay duty on the quantity manufactured and removed from the factory. Therefore, the quantity sold to the buyer at daughter stations (whether belonging to same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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