https://www.taxtmi.com/caselaws?id=468975 Payments of net present value and compensatory afforestation charges made for diversion of forest land are statutory levies under the forest conservation regime and not consideration for a declared service of tolerating an act under the Finance Act, 1994. Because the charges arise by operation of law and not from any voluntary quid pro quo arrangement, the ingredients of service and declared service are absent, so service tax is not payable on that basis. As the levy itself is not sustainable, consequential interest and penalty also fail. In the absence of suppression of facts, the extended period is unavailable and penalty under section 78 cannot be imposed. en-us Fri, 03 Nov 2023 00:00:00 +0530 Wed, 27 May 2026 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=468975 Payments of net present value and compensatory afforestation charges made for diversion of forest land are statutory levies under the forest conservation regime and not consideration for a declared service of tolerating an act under the Finance Act, 1994. Because the charges arise by operation of law and not from any voluntary quid pro quo arrangement, the ingredients of service and declared service are absent, so service tax is not payable on that basis. As the levy itself is not sustainable, consequential interest and penalty also fail. In the absence of suppression of facts, the extended period is unavailable and penalty under section 78 cannot be imposed. Case-Laws Service Tax Fri, 03 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=468975