TaxTMI 
TaxTMI 
2021 (11) TMI 427
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....to the appellant for the purpose by the Government of India in 2005 were cancelled by the Hon'ble Supreme Court vide its order dated 24th September 2014 along with similar allocations to other mining companies. The blocks were thereafter allocated to other companies. Since the appellants and other companies which are similarly placed had already invested in these mines, the Coal Mines (Special Provisions) Act, 2015 [1] and Coal Mines (Special Provisions) Rules, 2015 were enacted which provided for a compensation to be paid by the new allottees to the old ones (such as the appellant) in lieu of the financial loss incurred. Section 9 of CMSPA provides that a part of the proceeds, collected from the new allottees was to be paid to the old allo....
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.... 10,000/- (Rupees Ten Thousand only) upon the Noticee under Section 77(2) of the Finance Act 1994 for failure to self-assess their service tax liability properly and for failure to declare to correct liability in their statutory ST-3 return in contravention of Section 70 of the Finance Act, 1994 read with Rule 7 of Service Tax Rules, 1994; (iv) I also impose penalty of Rs. 2,78,32,500/- (Rupees Two Crore Seventy Eight Lakh Thirty Two Thousand Five Hundred only), under Section 78(1) of the Finance Act, 1994 for wilful suppression of taxable value of services and wilful contravention of statutory provisions and rules made thereunder with the intent to evade payment of Service Tax, on the Noticee. Provided that where the service tax c....
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....reement. Service, as per section 65B(44) is "Any activity carried out by a person for another for consideration" . In the present case, the appellant has neither carried out any service nor has it entered into an agreement to tolerate an act or situation for a consideration. What happened was by operation of law and the appellant had no choice but to tolerate and the compensation was also paid by operation of law. It was not the result of any contractual agreement either to render a service or to tolerate an act. d) As per the explanation (a) to Section 67, 'Consideration' includes any amount that is payable for the taxable services provided. Since this is an inclusive definition, Guidance Note dated 20.6.2012 issued by the CBEC ha....
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....ame have been proved. They have been filing their ST-3 Returns. g) No penalties can be imposed on the appellant. 4. Learned departmental representative supported the impugned order. 5. We have considered the arguments on both sides and perused the records. It is undisputed that the compensation was received by the appellant. Coal blocks allocated to the appellant as well as to several others were cancelled as per the judgment of the Hon'ble Supreme Court. Thereafter, they were allotted to new companies. From the time they were allotted to the appellant till their cancellation by the Supreme Court, the appellant had invested in mining in these blocks. Similar was the case with other allottees. In order to take care of this sit....