2018 (11) TMI 1384

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....f the Barauni Refinery was used for storage and onward dispatch to BRPL and Barauni Refinery was recovering terminal charges shown as the miscellaneous income and recovery of maintenance charges in their books of accounts. It has been the contention of the department that warehousing and storage services were being provided by M/s Indian Oil Corporation (Barauni Refinery), Barauni for M/s HBCPL and the charges recovered by them for providing such facility were legally leviable to service tax which the appellants have failed to pay to the department and therefore two show cause notices came to be issued to the appellants. 2. The show cause notice dated 01/11/2007 covering period from 2003-2004 to 2006-2007 was issued for demanding service t....

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....on and storage of rava crude has been entered between Haldia Barauni Crude Pipeline Ltd. (HBCPL) and Barauni Refinery and Petro Chemicals Ltd. (BRPL) for transportation of the crude oil from Haldia Port to Barauni. For this terminating the facility at Barauni which is practically under the control of Barauni Refinery are being used. The entire operation of transportation of the crude oil is being undertaken under a single contract entered between HBCPL and BRPL and there is no separate contract between Barauni Refinery and BRPL. It has further been emphasized by the learned representative that the appellants are getting no additional consideration in handling of the rava crude under the above-mentioned contract. In short, it has been submit....

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....ve who has reiterated the arguments of the Original Adjudicating Authority. 8. Having heard both the sides, we are of the view that the entire operation of transportation of the crude from Haldia port to BRPL is covered by a single contract. The terminal facilities are only intermediate operation of the transportation of the goods through pipeline. Since, the requisite amount of the service tax has already been paid on the service of transportation through pipeline provided by the respective parties, we feel that the terminal facilities being the integral part of the entire pipeline facilitating the transportation of the liquid crude, it will not be legally correct to consider the terminal facilities as independent facilities for which no ....