GUJARAT STATE FERTILIZERS & CHEM. LTD. Vs. C.C.E., C. & S.T.
LAWS(CE)-2015-2-71
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on February 04,2015

Gujarat State Fertilizers And Chem. Ltd. Appellant
VERSUS
C.C.E., C. And S.T. Respondents

JUDGEMENT

P.K.DAS, J. - (1.)
(2.)COMMON issue is involved in these appeals and therefore, both are taken up together for disposal. The relevant facts of the case, in brief, are that the appellant is engaged in the manufacture of ACH (Acetone Cyanohydrins), MMA, MAA (Myth -acrylic Acid) classifiable under Chapter 29 of the Schedule to the Central Excise Tariff Act, 1985. The appellant received HCN (Hydro Cynic Acid) from M/s. Reliance Industries. Ltd. (formerly IPCL) through pipeline and partially utilised in their factory for manufacturing of their final product. The balance quantity of 40% were supplied to M/s. Gujarat Alkali and Chemicals Ltd. (GACL) adjacent to their factory. The appellant received consideration for supply the HCN from M/s. GACL known as "incineration charges". Show cause notices were issued proposing demand of Service Tax along with interest and penalty under the category of "Storage and Warehousing Services".
The Adjudicating Authority confirmed the demand of Service Tax along with interest and imposed penalties under various Sections, including Section 78 of the Finance Act, 1994. Commissioner (Appeals) upheld the Adjudication Order.

(3.)THE learned Advocate on behalf of the appellant submits that there is no storage or warehousing facility at their premises. It is a continuous process for supply of gas to the other companies. It is contended that M/s. Reliance Industries Ltd. supplied the gas to the other companies. There is no relation of service provider and service receiver between the appellant and M/s. GACL. He submits that this fact was not examined by the lower authorities.
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