2018 (7) TMI 1198

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.... Gas Authority of India Ltd. (GAIL) and Indian Oil Corporation Ltd. (IOCL), are registered with the Central Excise Department for the manufacture of 'Compressed Natural Gas' or 'CNG'. CNG is classifiable under Tariff Entry No.27112900 of the first Schedule of CETA. The appellant is also engaged in the distribution of 'CNG' at Agra and Lucknow. The appellant required cascades for manufacture of CNG. Cascades are system of storage for compressed gas where many storage tanks/cylinders are kept in close proximity and are connected to each other, the purpose of which is to stabilize and maintain the pressure in the tanks while pumping the compressed gas out of them for filling the same in the vehicles, etc. Cascades are used as the primary mode ....

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....e for maintaining the equipment and related infrastructure in proper working condition. These equipments include dispensers, boosters, cascades, compressors and other associative equipments. Thus these cascades are used for both storage of CNG as well as transportation of CNG. 4. In reply to the SCN dated 24th March, 2011, for the period 2005-06 and 2006-07 invoking the extended period of limitation, the appellant had urged that these cascades are in the nature of storage tank and therefore fall in the definition of capital goods as defined in Rule 2(a)(A)(vii) wherein capital goods means, also storage tank used in the factory of manufacturer of the final product. It was also urged by the appellant that these cascades have been used in t....