TaxTMI 
TaxTMI 
2022 (9) TMI 741
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....elds Ltd, was liable to tax of Rs. 12,64,55,319 on total recovery of Rs.93,93,07,361 effected in their several areas between July 2012 and March 2016 being consideration for 'declared service' enumerated in section 66E (e) of Finance Act, 1994. In addition, the adjudicating authority charged interest on the said differential tax liability under section 75 of Finance Act, 1994 besides imposing penalties under section 77 and 78 of Finance Act, 1994. 2. At the core of the dispute is the allegation that the contractual obligations enforced by the appellant, to the monetary detriment of their buyers, contractors and material suppliers, is '(e) agreeing to the obligation to refrain from an act, or to tolerate an act or situation, or t....
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....:- "5. M/s. SECL is charging & collecting amount in the name of compensation/penalty from the buyers of coal on the shortlifted/ unlifted quantity of coal & non-compliance of terms & conditions of coal supply agreements including forfeiture of EMD/SD. M/s. SECL is also collecting amount in the name of compensation/penalty from the contractors engaged by them for providing various types of services viz. transportation, OBR removal, etc. for breach of terms & conditions of the respective contracts. It is also noticed that SECL were also recovering/claiming amount in the name of liquidated damages from the material suppliers for breach of terms & conditions of the contracts. Accordingly, in terms of provisions of Section 65B of the Fi....
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....use notices had been issued to the appellant on identical issues. In such circumstances, such six show cause notices were also tagged.' therein to contend that identical issues had plagued all the public sector coal mining companies and that, in consequence of the final determination that '42. The conclusion drawn by the Learned Authorized Representatives of the Department from the aforesaid decision of the Supreme Court that compensation received is 'synonymous' with 'tolerating' or that the Supreme Court acknowledged that in a breach of contract, one party tolerates an act or situation is not correct. 43. It is, therefore, not possible to sustain the view taken by the Principal Commissioner that penalty amount, forfei....
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....y, the Hon'ble Supreme Court did, in Re : West Coast Paper Mills Ltd., take note that '14. Article 136 of the Constitution confers a special power upon this Court in terms of an appeal shall lie against any order passed by a Court or Tribunal. Once a Special Leave is granted and the appeal is admitted the correctness or otherwise of the judgment of the Tribunal becomes wide open. In such an appeal, the Court is entitled to go into both questions of fact as well as law. In such an event the correctness of the judgment is in jeopardy.' but its assistance to the proposition of Revenue is not immediately obvious. 8. The architecture of appellate ascendance under Customs Act, 1962, and replicated in Central Excise Act,....
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....ot having been accepted by the trial Court and not having found favour with the High Court, was carried in appeal before the Hon'ble Supreme Court. 10. While considering the plea of the Indian Railways that the bar of limitation operated with reference to the date on which the Railway Rates Tribunal pronounced its order, and in accordance with Section 58 of Limitation Act, 1963, the Hon'ble Supreme Court, in doubt over the correctness of the law laid down in P.K. Kutty Anuja Raja & Another v. State of Kerala & Another [JT 1996 (2) SC 167], referred the issue to a Larger Bench which opined that the said decision was not applicable for not having noticed certain crucial decisions and the doctrine of merger. In deciding upon the appli....