No Service Tax on ‘Allowed Loss and Consumption’ of LNG during regasification

Petronet LNG Limited Vs Principal Commissioner of Service Tax (CESTAT Delhi) The Appellant regasifies Liquefied Natural Gas owned by customers in terms of Agreements which also contain a clause relating to “allowed loss and consumption” under which a certain percentage of LNG made available to the Appellant by the customers is understood to be lost/consumed in performing the regasification The Appellant discharged service tax liability on the amount received for regasification services, but the Revenue proposed to levy service tax on the value of such pre-fixed quantum of LNG identified to...