The CESTAT held that service tax is not leviable on royalty...

The CESTAT held that service tax is not leviable on royalty payments made under reverse charge for the assignment of mining rights conferred prior to 01.04.2016, as the mining lease was executed before that date. Relying on precedent affirmed by the Supreme Court, the tribunal found that the Point of Taxation Rules do not determine the taxability of the service but only the timing of payment. Accordingly, the appellant's royalty payments from April 2016 to June 2017 were held non-taxable. The entire service tax demand was set aside, and no penalty was imposed. The appeal was allowed in favor of the appellant.