2010 (1) TMI 490

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....rtaking), under the category of Transport of Goods through pipeline or other conduit service for disallowing the input credit of service tax amounting to Rs. 63,70,11,505 with interest and equivalent amount of penalties under sections 78 and 76 of the Finance Act, 1994. 2. The brief facts of the case are that the applicants are providing taxable service falling under the category of "Transport of Goods through pipeline or other conduit service", which is a State Government Undertaking. A scrutiny of the documents was conducted and it was found that the applicants are availing input credit of service tax on commercial or industrial construction service/erection, installation and commissioning service used for execution of pipeline project....

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....their premises. He further submitted that the Commissioner has held that the pipeline is not the premises of the applicants and moreover they are not the owner of the land under which the pipeline has been laid down. Hence, these services are not availed in their premises and the Cenvat Credit availed by the applicants are denied. Furthermore, the Commissioner has held that the pipeline is an immovable property, which is duty free product. Hence, as per rule 6(1) of Cenvat Credit Rules, 2004, the applicants are required to reverse the Cenvat Credit availed on the input services by the applicants. On this point, the learned advocate submitted that the Apex Court vide his decision dated 21-1-1975 in the case of Anant Mills Co. Ltd. v. State o....