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TMI Blog2014 (6) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... In any processing facility, material has to be received and dispatched but that would not make the processing facility as ‘Transport Terminal'. In our view, transportation is only incidental to the processing facility. After all the fluid received is for extraction of dry gas and thereafter the dry gas is required to be sold to its customers and therefore there has to be facility to receive and transport the same. Even the owner of the facility calls the facility as ‘Onshore Terminal' and does not call it ‘Transport Terminal'. This itself indicates that even the owner does not recognize the facility as ‘Transport Terminal'. We have no hesitation in holding that the facilities available at the onshore terminal at Gadimoga cannot be termed as ‘Transport Terminal'. There is no requirement that the transport terminal should be owned by a public authority alone. However, since we have held that the onshore terminal at Gadimoga cannot be considered as transport terminal, this argument though in favour of the appellant does not help in the present situation. Extended period of limitation - Held that:- Proviso to Section 73 has been invoked and penalty also has been imposed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fittings and other similar services, in relation to building or civil structure; or (d) repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, which is - (i) used, or to be used, primarily for; or (ii) occupied, or to be occupied, primarily with; or (iii) engaged, or to be engaged, primarily in, commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams; (emphasis supplied) Section 65(105)(zzq) defines the taxable service means any service prescribed or to be provided,- to any person, by a commercial concern, in relation to commercial or industrial construction service 5. Above definition of Commercial or Industrial Construction Service' does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams'. The scope of the term Transport Terminal is not defined under the Finance Act, 1994 or the Rules made thereunder. In the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w; (viii) treatment and disposal of produced water and other effluents in accordance with applicable law; (ix) control and monitor the OT, CRP and sub sea operations and safeguard all facilities from centralized control room at the OT; and (x) provision of all utilities to support the above functional requirements of the OT. 9. The facilities which were envisaged at the said onshore terminal are listed as under: (i) pig launcher/receiver station, inlet manifolds, block valves; (ii) slug catcher and inlet gas heating system: (iii) gas separation and dehydration system (including TEG regeneration system); (iv) liquid separation system; (v) fiscal gas metering system; (vi) fuel gas treatment system; (vii) effluent treatment system; hot oil heater and circulation system; (viii) MEG regeneration, storage and injection system; (ix) instrument air compressor and distribution system; (x) nitrogen generation system; (xi) chemical storage and injection system; (xii) HP and LP flare system; (xiii) power generation, distribution and management system; (xiv) emergency and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uid received is processed and after process dry gas is obtained which is sent in various pipelines for sale. (ii) The process is highly technical and includes MEG regeneration and MEG injection into the pipes / well in the subsea facilities TEG regeneration system. (iii) At the onshore terminal there are number of facilities which not only controls and monitors various operations in the onshore terminal but also in the CRP and sub-sea operations and takes necessary steps to safeguard facilities from Centralized Control Room at the Onshore Terminal. Thus the onshore terminal not only process the fluid received from the Godavari basin and deep-sea to extract the dry gas but also controls and monitors various CRP and sub-sea operations and take necessary steps to safeguard facilities from Centralized Control Room located at OT. 11. The main contention of the learned Senior Advocate for the appellant is that the facility on the onshore terminal only receives gas from deep-sea and thereafter distribute through pipelines to various destination throughout the country. Since at the onshore terminal the gas is received and thereafter sent to various places the facility is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Los Angeles may have to change planes in Toronto. Terminals may also be points of interchange between different modes of transportation, so that goods being shipped from the American Mid-West to the Ruhr in Germany may travel by rail from Cincinnati to the port of New York, put on a ship to Rotterdam, and then placed on a barge for delivery to Duisburg. Transport terminals, therefore, are central and intermediate locations in the movements of passengers and freight. Terminal. Any location where freight and passengers either originates, terminates, or is handled in the transportation process. Terminals are central and intermediate locations in the movements of passengers and freight. They often require specific facilities and equipment to accommodate the traffic they handle. Terminals may be points of interchange within the same modal system and which insure a continuity of the flows. This is particularly the case for modern air and port operations with hubs connecting parts of the network. Terminals, however, are also very important points of transfer between modes. Buses and cars deliver people to airports, trucks haul freight to rail terminals, and rail brings fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed is pumped into pipelines to various destination/direction. Such a water treatment facility cannot be called as Transport Terminal' for water. In the present case, it is not only processing of extracted fluid but injecting MEG in sub-sea facilities, monitoring and controlling operation of various facilities in the high-seas in Exclusive Economic Zone. Workshop facilities required for operation in these facilities and other infrastructure facilities. 15. We have earlier briefly summarized various functions of the facilities created at the Onshore Terminal'. It is very important to note that the said terminal controls various operations being carried out in the high seas in the exclusive economic zone. The happening in the wells and various network of pipes within the sea is also monitored and controlled from the facilities available in the Onshore Terminal'. It is also observed that the terminal also has the facilities like workshop, lounge, guest house to accommodate the staff working offshore, helipad etc. We have also gone through the facilities as well as the functional capabilities listed in paras 8 and 9 earlier which make it very clear that the facilities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, tunnels, dams are all belongs to infrastructure facilities. We therefore do not find any force in this contention of the appellant. 18. There are certain other contentions raised by both sides. We do not consider it necessary to go into those details, as we have already held that the facilities available at the onshore terminals are relating to processing of fluid received for extraction of dry gas, MEG etc using TEG and monitoring and controlling various operations relating to gas extraction in the high-sea/sub-sea. Transport of gas after processing is only incidental. 19. We have also gone through the Order-in-Appeal passed by the Commissioner (Appeals) where he has taken a view that the said facilities as transport terminals. We understand that the said order of the Commissioner (Appeals) has been challenged by Revenue and is pending decision before the Bangalore Bench of the Tribunal. It may not be appropriate for this Bench to comment in details on the same. We have gone through the said order and we find that the Commissioner (Appeals) is perhaps not aware of all the facilities available at the onshore terminals and has therefore drawn such a conclusion. In any case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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