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TMI Blog2025 (4) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... ith applicable interest and applicable penalty under Section 76 of the Finance Act. 2. The facts, in brief, are that the appellant is registered with service tax department for providing services as consulting engineer and for payment of service tax for transport of goods service by road. The appellant is engaged in the manufacture of goods namely liquid nitrogen, liquid oxygen and supply of these gases to various customers by transporting them in specially built Vacuum Insulated Storage Tanks and delivered to customers as per their requirements. Wherever the customers needed a regular supply of liquid gases without any interruption, the appellant provides Fixed Storage Tanks, namely, Vacuum Insulated Storage Tanks (VIST) at the customer's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellant enters into the agreement with the customers for sale of the liquid gases and providing the tanks on lease / rent for those who do not have it. As per the agreement terms, the appellant installed the tanks at the customers premises charging a monthly rent for the tank with fixed facility charges. In as much as these tanks are movable goods, the appellants have transferred the right to use the tanks to the customers, and since such transaction under an agreement is the transfer of right to use / deemed sale, the appellant has paid VAT at 4% under Puducherry Value Added Tax Act, 2007 on the fixed facility charges (FFC). The Ld. Counsel submits that the appellant is merely renting the tanks to the customers and is not providing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has come up for consideration before this Tribunal and has been decided in the appellants favour, vide Final Order No.40455/2023 dated 20.06.2023 in the case of M/s. Inox Air Products Ltd v The Commissioner of GST & Central Excise, Puducherry Commissionerate. The relevant portions of the order are as under: "6. The period of dispute is from 16.05.2008 to March 2009. The demand of service tax has been raised on the Fixed Facility Charges collected by the appellant for supply of tanks for storing the liquid gases. Ld. Counsel has explained that they are engaged in the manufacture of liquid gases and the said product being in the nature of liquid gas cannot be supplied to customers without arranging the proper facility for storage. The tanks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were replied vide letter of even number dated 28th May 2014. Thereafter, INOX have again represented vide their letter dated 25.6.2014. ... ... .... 5. In view of the same, it is clarified that: (a) In the months where there is a supply of gas, all elements of consideration such as, price of gas at designated rate per unit of gas and FFC would be added to determine the assessable value for payment of Central Excise duty. In those months, where MTOP is charged, the same shall be added to FFC to determine assessable value. (b) FFC paid for the months when there was no supply of gases is to be added in the price of gas supplied in the subsequent month, in addition to the price arrived for that month as per (a) above. (c) If FCC is pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, the appellant has to supply tanks before supply of liquid gases to the customers. Thus the assessee is required to include the value of FFC and MOTP in the transaction value of the gases for discharging the Central Excise duty. The said clarification issued by the Board was considered by the Tribunal in the case of Goyal MG Gases Private Ltd. (supra). The issue considered in the said decision by the Tribunal is whether the FFC collected by the assessee would be taxable under Business Support Service (BSS). During the disputed period, the appellant has been discharging excise duty on the FFC which is not disputed by the department. Since it is also clarified by the Board in the appellant's own case that the said charges have to be includ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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