TaxTMI 
TaxTMI 
2010 (8) TMI 220
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....tate Petroleum Corporation (GSPC for short), who had taken lead in developing Energy Transportation Infrastructure in Gujarat and in connecting major natural gas supply sources an demand markets. M/s. GSPL is engaged in forwarding natural gas to various bulk shippers comprising industries as power, fertilizer, steel and chemical plants which require natural gas as fuel or feedstock for their operations. They were established with a view to transmit the natural gas by pipeline system in its gaseous form. For the said purpose, either natural gas supplier or the user entered into Gas Transmission Agreement (GTA for short) with them for the purposes of transporting the natural gas from supply source to a point where it can be utilized. 2.̳....
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....(j) of the Finance Act, 1994. Accordingly, proceedings were initiated against the appellant by way of issuance of show cause notice dt. 24-10-08 raising demand of service tax for the period April 2003 to June 2005 under the category of Clearing & Forwarding Agent. The notice also proposed confirmation of interest as also imposition of penalty. 4. The appellant during the course of adjudication, contended before adjudicating authority as follows : (i) That they city undertake the activity for transportation of the gas from source to the destination which became leviable to tax w.e.f. 16-6-05. (ii) As per the agreement, the obligation en the part of the appellant is merely to take delivery of the gas from the purchaser at....
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.... services of Clearing & Forwarding Agent. (vii) That as per the settled law on the issue, when the particular service is introduced with effect from a particular date, it has 10 be held that such service was not covered by any other earlier services. (viii) That the demand is squarely barred by limitation. That they also relied upon Tribunal's decision in the case of Oil India Ltd. v. CCE - 2008 (12) S.T.R. 115 (Tri-Kolkata), specifically laying down that the service of transportation of oil through pipe line is taxable w.e.f. 16-6-05 and prior to the said date, the services cannot be held to be liable to tax under the category of Clearing & Forwarding Agent. 5. The Commissioner, in his impugned order, observed that the defi....
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....ty, transportation & dispatch are actually being undertaken by GSPL for shippers, is not in dispute. By virtue of definition, if a service is being provided directly or indirectly connected with Clearing & Forwarding operations in any manner, it is liable to be covered under the classification of "Clearing & Forwarding Agent" service. Thus, he held that the subject activities undertaken by GSPL under the GTA are liable to be classified under the category of "Clearing & Forwarding Agent" service, as defined under Section 65 of Finance Act, 1994; for the period prior to 16-6-2005." 6. He further rejected the appellant's contention that they do not have any warehouse to store thee goods and invoices are not being issued by them on behal....
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.... same prior to the said date under the category of Clearing & Forwarding Agent, cannot be upheld. For better appreciation, we reproduce Para 5 of the judgment. "5. It is settled principle of law that there is no intendment nor equity abbut tax. Every subject is taxed by specific letters of law. From, 16-6-05 incoroorating sub-clause (zzz) to Section 65(105) of Finance Act, 1994, transport through pipeline was brought to ambit of tax. Transport of crude oil through pipeline having been brought to tax specifically w.e.f. 16-6-05, taxation thereof prior to enactment of law in inconceivable. In view of our observations and view conveyed through Board Circular and considering the enactment as above, we are of view that the impugned order ....