2014 (12) TMI 505

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.... Consultant For the Respondent: Shri K. Chowdhury, Supdt. (A.R.) ORDER Per Dr. D. M. Misra : This is an application for waiver of predeposit of service tax of Rs. 1.88 Croes and equal amount of penalty imposed under Section 78 of the Finance Act, 1994. 2. At the outset, the ld. Company Secretry (C.S.) appearing for the Applicant, has submitted that the Applicant is a Government of I....

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....on out of transportation of gas through the pipelines. The amount confirmed against the aforesaid collection of MDC is Rs. 1.43 Crores. Regarding the other component, the ld.C.S. for the Applicant, has submitted that during the period, 2010-2011 i.e. from June, 2010, they have been collecting marketing margin from the consumers against the supply of natural gas pursuant to Notification of Ministry....

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....x as applicable, therefore, it is not a service under the category of Business Auxiliary Service, but a transaction of sale, hence, no service tax is applicable. 3. The ld. A.R. appearing for the Department, on the other hand, submitted that it has been specifically stipulated in the relevant agreement that the amounts (MDC), which were collected from the customers, were nothing, but transmissi....

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....ipelines. It is collected from the customers in the event that the total volume of transportation of gas in a particular year falls below 90% of the agreed quantity. The Revenues contention is that this amount has been mentioned in the agreement as transmission charges, therefore, the value should be included in the gross taxable value realized towards transportation/transmission of gas. We find ....