PETRONET LNG LIMITED Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) HEARD Shri Sujit Ghosh, learned counsel for the appellant and Shri Govind Dixit, learned authorised representative for the respondent -Revenue. The assessee is the appellant. The appeal is preferred against the Order -in -Original No. 62 -64/GB/ST/2012 dated March 6, 2012 (adjudication order) passed by the Commissioner, Central Excise and Service Tax, New Delhi. By orders of the Tribunal passed pursuant to applications by the appellant, the corrigenda (amending the adjudication order in respect of interest/penalty), are also brought on record. The adjudication order was passed in respect of three show -cause notices dated April 22, 2010, September 12, 2011 and October 13, 2011.

(2.) THE show -cause notice dated April 22, 2010 proposed to levy service tax under section 66A of the Finance Act, 1994 (under the reverse charge mechanism) as the recipient of "supply of tangible goods", (STGU), a taxable service defined and enumerated under section 65(105)(zzzzj) of the Finance Act, 1994 ("the Act"). The period covered under this show -cause notice is May 2008 and March 2010. A second show -cause notice dated September 22, 2011 proposed levy of service tax on commercial borrowings during the period 2006 to March 2011. The third show -cause notice dated October 13, 2011, covering the period April 2010 to March 2011 was for levy of service tax, also on the taxable "STGU" service.

(3.) FOR transporting LNG, the assessee signed two "Time Charter Agreements" (TCA) with a consortium of ship owners, namely, (i) M/s. Mitsui O.S.K. Lines Ltd.; (ii) M/s. Shipping Corporation of India Ltd.; (iii) M/s. Nippon Yusen Kabushiki Kaisha; and (iv) M/s. Kawasaki Kisen Kaisha Ltd. These ship owners are collectively referred to as "owners". The assessee also entered into a short term TCA. One such agreement was entered into with Trinity LNG Transport, vide agreement dated April 30, 2009 for hiring the LNG tanker "Trinity Glory". The short term TCA and the TCA's are collectively referred to as "agreement".