2015 (9) TMI 1092

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.... 2. The impugned order confirms service tax liability of Rs. 1,36,15,903/- apart from interest and penalties as specified therein on the premise and for conclusions recorded, that the applicant provided Business Auxiliary Service (BAS) to M/s. Indraprastha Gas Ltd. (IGL) on sale of Compressed Natural Gas (CNG) at applicant's retail outlets in Delhi. 3. The applicant and IGL entered into operating agreements including the agreement in issue dated 11.10.2012, whereby IGL supplies natural gas through its pipe lines upto a "limit point" at the applicant's retail outlets; IGL establishes and maintains its equipment at such retail outlets for compressing natural gas into CNG, which is then vended to retail customers. 4. While Reven....

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....herein and thereafter another sale of CNG from the appellant to retail customers. 7. The above judgement, with respect, does not appear to have examined the terms of agreement between the retail petroleum outlet, the appellant therein and MGL in sufficient detail and proceeded on an assumption that there was an anterior sale of CNG to the appellant therein. This judgement was followed in the Interim Order in Indian Oil Corporation Ltd. (supra), dated 09.02.2015. It requires to be noticed that the Interim Order after recording details of the order impugned therein and pleas of respective parties, extracted the agreement between the applicant herein (who was also the applicant therein) and IGL in extenso, in paragraph-4. Paragraph-6 of thi....

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....IGL to the applicant. Clause 4 of the agreement enumerates obligations of the applicant under the contract. Clause 5 stipulates entitlement of IGL to install compression equipment at the applicant's site and that the equipment continues to be absolute property of IGL. Clause 6 of the agreement sets out other obligations of the applicant, which are not relevant to the issue presented before us. 10. Clause 7 sets out representations and warranties by parties to the agreement. Clause 8 provides some light to the issue whether there is a transfer in the property, in natural gas or CNG from IGL to the applicant. Clause 8.1 sets out obligations regarding payments by the applicant to IGL for the CNG sold. This clause does not however clearl....