2018 (7) TMI 157

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....A classifiable under chapters 15, 34 and 38 of the first schedule to CETA. They entered into an agreement with M/s I.M.C. Ltd. with regard to Oil Pipeline Supply Management Services termed as 'Pipeline utilisation charges' to oil tanks. There is a clause in the agreement that in case of shortfall in the defined quantity, the appellant is liable to a certain amount for such shortfall as penalty. The appellant paid the penalty to the service provider for such shortfall and the credit of service tax on such payment has been availed by the appellant. According to the Revenue, the appellant has availed credit of service tax for such services which were not rendered by the service provider and were basically in the nature of penalty and therefore....

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....le in the event of a shortfall of minimum guarantee shall stand reduced to Rs. 25/- per MT. It is expressly stated that for this purpose, year shall be the calender Year from January to December and the minimum guarantee computation will be on the completion of every year. Should the annual throughput exceed 20000 MT per annum then for the additional cargo above 20000 MT the "Pipeline Utilisation Charges" shall be Rs. 25/- per MT. If for any reason whatsoever, the "Company" is unable to pump/transfer the liquid cargo so required by "Party" and the "Party" is in no way responsible for such failure then for the period of disruption the minimum guaranteed quantity shall be reduced proportionately." 5. There is no dispute that service tax is ....