TaxTMI 
TaxTMI 
2016 (3) TMI 614
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....bai II. 2. The relevant facts that arise for consideration after filtering out the unnecessary details are that the appellant herein is holding centralized Central Excise Registration for manufacturing of Compressed Natural Gas (CNG). The appellants have been availing CENVAT Credit on capital goods namely, compressor, cascades, dispenser spares in terms of relevant cenvat Credit Rules. The appellant availed CENVAT Credit of duty paid such as goods, cascades which are used for transportation of CNG to their Daughter Booster Stations (DBS) for eventual sale during the period March, 01 to Dec, 04. Revenue authorities were of the view that the CENVAT Credit cannot be availed on cascade without bottle or cylinders which are mounted on vehicle....
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....ss the CNG is re-compressed at DBS, there is no marketing of the CNG. He would the draw our attention to Chapter Note 5 under Chapter 27 which indicates that "process of compression of natural gas (even if it does not involve liquefaction), for the purpose of marketing, it is Compressed Natural Gas (CNG), for use as a fuel or for any other purpose, shall amount to manufacture" and submit that unless the CNG is further re-compressed in DBS, the product could not be filled in the vehicles hence will not attain marketability. He would submit that compression of CNG is considered as manufacturing activity is not disputed and re-compression would also include compression. 3.1 It is his further submission that Notification No. 35/2001-CE(NT) d....
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....tantly hit by limitation. He would submit that the appellants have filed regular returns with the authorities. 4. Learned AR reiterates the findings of the adjudicating authority as well as first appellate authority. 5. We have considered the submissions made by both sides and perused the records. 5.1 The issue involved in this case is whether the appellants are eligible to avail CENVAT Credit on cascades, various compressors installed at DBS for dispensing the CNG into the vehicles or otherwise. Undisputed facts are that the cascades are used by the appellant to transport CNG from Mother Station (MS) to Daughter Booster Stations (DBS). The compressors which are installed at DBS are used for the re-compression of CNG in order to ac....
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....neither incidental nor ancillary for manufacture of CNG at DBS as the recompression is of CNG. (ii) Secondly, reliance was placed on the Chapter Note 5 to the Chapter 27. The said Chapter Note will not be of any help to the appellant's case as the said Chapter Note talks about the compression of natural gas for the purpose of marketing the CNG would amount to manufacture, in the case in hand, the compression of natural gas takes place at mother station. At DBS the recompression of CNG does not bring into existence any new product which is distinct. 5.3 The reliance placed by the learned Counsel on the case of Vikram Cement and Birla Pericalse (supra) will also be of no help as in that cases the issue was regarding the use of capit....