https://www.taxtmi.com/caselaws?id=758530 CESTAT Kolkata held that Net Present Value (NPV) payments made by appellant to Compensatory Afforestation Fund (CAMPA Fund) for forest land conversion are not taxable under service tax. The tribunal ruled that government clearance for non-forest use of forest land cannot be considered a "Declared Service" under Section 66E(e) of Finance Act, 1994, as government is not "tolerating" appellant's act but fulfilling constitutional mandate under Article 48. Following precedent in Mahanadi Coalfields case, CESTAT determined NPV payments are compensation, not consideration for taxable service. No suppression of facts found, hence extended limitation period inapplicable. Service tax demand, interest, and penalty under Section 78 set aside. Appeal allowed. en-us Tue, 10 Sep 2024 00:00:00 +0530 Sun, 15 Sep 2024 15:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758530 CESTAT Kolkata held that Net Present Value (NPV) payments made by appellant to Compensatory Afforestation Fund (CAMPA Fund) for forest land conversion are not taxable under service tax. The tribunal ruled that government clearance for non-forest use of forest land cannot be considered a "Declared Service" under Section 66E(e) of Finance Act, 1994, as government is not "tolerating" appellant's act but fulfilling constitutional mandate under Article 48. Following precedent in Mahanadi Coalfields case, CESTAT determined NPV payments are compensation, not consideration for taxable service. No suppression of facts found, hence extended limitation period inapplicable. Service tax demand, interest, and penalty under Section 78 set aside. Appeal allowed. Case-Laws Service Tax Tue, 10 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758530