2021 (8) TMI 472

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....rals (P) Ltd., a partnership firm, has filed this writ petition assailing the legality of imposition of service tax on royalty and allied charges paid by the Petitioner on the minerals extracted by it by virtue of granting of mining lease by the Government in its favour. 3. The Petitioner is a lessee of iron ore mines in the State of Odisha and it has been removing ores from the mines for sale or consumption and paying royalty under Section 9(2), contribution to District Mineral Foundation under Section 9B(5) and contribution to National Mineral Exploration Trust under Section 9C(4) of the Mines and Mineral (Development and Regulation) Act, 1957 as amended from time to time and also it has been paying Users Fee in terms of Rule 2(ia) of Od....

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....019 under Section 73(1) of Finance Act. The Petitioner replied to the show-cause and finally Opposite Party No.1 after due adjudication passed order on 27th February, 2020 confirming the Service Tax dues amounting Rs. 4,12,92,553/- together with applicable interest and penalties under Sections 75, 76 and 77 of Chapter V of Finance Act, 1994. Hence, this case. 5. Mr. J. Sahoo, learned Senior Advocate for the Petitioner contended that the Petitioner is not liable to pay the service tax and royalty because the nomenclature suggests that service tax is imposable on the provision of "service" by the service provider to the service recipient as opposed to tax on sales which is levied on sell of goods by one party to another. Originally service t....

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....nd decide the matter in accordance with law. 6. Mr. T.K. Satpathy, learned counsel appearing for Revenue Department vehemently contended that the order impugned in Annexure-4 is appealable and, as such, if appellate forum is available, this Court should be slow to interfere with the same and allow the appellate authority to proceed with the matter in accordance with law. 7. Having heard learned counsel for the parties and after going through the records, if the order impugned is appealable, we relegate the Petitioner to approach the appropriate forum in accordance with law. At this point of time, Mr. J. Sahoo, learned Senior Advocate for the Petitioner contended that the Petitioner has no objection to approach the appropriate forum under ....