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TMI Blog2018 (7) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant availed MS pipeline facility belonging to M/s IMC Ltd. The service provider paid the tax which cannot be denied and therefore, the availment of cenvat credit by the recipient unit cannot be denied. Appeal allowed - decided in favor of appellant. - Ex. Appeal No.75315/18 - FO/A/76034/2018 - Dated:- 19-3-2018 - SHRI P. K. CHOUDHARY, JUDICIAL MEMBER Shri H. P. Kanade, Adv. for the Appellant (s) Shri S. S. Chattopadhyay, Supdt. (A.R.) for the Respondent (s) ORDER Per Shri P. K. Choudhary: This is an appeal filed by the Appellant against the Order-in- Appeal No.93/Kol.V/2017 dated 30.10.2017 passed by the Commissioner (Appeals) of CGST (Appeals I), C.Ex., Kolkata South. 2. Briefly stated the facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were in the nature of penalty and cannot be treated as input service as defined under Rule 2(l) of the Cenvat Credit Rules, 2004. The ld. Counsel appearing on behalf of the appellant drew the attention of the Bench to the agreement dated 10 March 2002 between the appellant and M/s IMC Ltd. in respect of transfer of liquid cargo from M/s IMC Ltd.,s terminal. It is seen that there is a clause for pipeline utilisation charges. For the proper appreciation of the case, the relevant portion of the said agreement is reproduced: 6. The Minimum Guaranteed quantity will be 20000 MT of oil pumped through pipelines (both from Company s terminal/N.S.Dock i.e ex-ship to Party s Factory annum. For any shortfall below 20000 MT per annum Party shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods. Therefore, the denial of credit is not justified. 6. The Tribunal in the case of CCE, Mumbai v. GKW Ltd. [2014 (308) ELT 759 (Tri.-Mum)] observed that excise authorities having jurisdiction over recipient of inputs cannot reopen classification adopted by the officer having jurisdiction over input supplier. The relevant portion of the said decision is reproduced: 5. I have carefully considered the submissions advanced by the Revenue. 5.1 It is true that in the case of Technoweld Industries (supra), the Hon ble Apex Court had held that the process of drawing wires from wire rods not amount to manufacture. The issue dealt in the said decision is only whether the process of drawing wire from wire rod amounts to manu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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