TaxTMI 
TaxTMI 
2024 (1) TMI 5
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....mmissioner confirming the demand of service tax by treating the service provided by the appellant as a declared service under section 66E (e) of the Finance Act, 1994 the Finance Act with interest and penalty. 2. The appellant is a Public Sector Undertaking and is a subsidiary of Coal India Limited. It is engaged in the business of mining and selling of coal. 3. A show cause notice dated 11.10.2021 was issued to the appellant for the period April, 2016 to June, 2017 alleging that the appellant would have to pay service tax under a reverse charge mechanism on the net present value under the Compensatory Afforestation Funds Act, 2016 in view of the provisions of section 66E (e) of Finance Act. The appellant deposited the net present val....
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....23, which decision has placed reliance on the earlier decision of the Tribunal in MNH Shakti Limited vs. Rourkela Service Tax Appeal No. 75218/2020. Learned counsel also pointed out that this decision of the Tribunal has been accepted by the department. 8. Shri Harshvardhan, learned authorised representative appearing for the department has, however, submitted that the order passed by the Commissioner does not call for any interference in this appeal. 9. The submissions advanced by the learned counsel for the appellant and the learned authorised representative appearing for the department have been considered. 10. It does transpire that the issue that arises for consideration in this appeal, is whether the payment of net present va....
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....mpensatory Afforestation Charges and other such site specific charges are required to be paid to make good the damage caused by such user agency. In the process, application for non-forestry use of forest land is made by the user agency to Ministry of Environment & Forest, Govt. of India, and final approval for such non-forestry use of such forest land is given by Ministry of Environment & Forest, Govt. of India, on payment of specified charges as mentioned above and after receiving recommendation of the concerned State Government. 8.2 We find that Tribunal Kolkata has decided a similar issue in the case of MNH Shakti Ltd Vs Commissioner of Central Excise and Service tax, Rourkela, wherein it has been held as under: "6. The questio....
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....r an agreement and charge service tax on the compensation. Equally unthinkable is to say that the Government employee has tolerated the non-sanction of leave during his service as per an agreement and in consideration, received the leave encashment at the time of retirement and to charge service tax on the amount received as leave encashment. These, cannot be called taxable services of tolerating a situation by any stretch of imagination. No service tax can be levied on the amounts received by the appellant as compensation. " 9. We observe that the facts of the present appeal are similar to that of the decision cited above. Relying on the above decision, we hold that the clearance granted by Ministry of Environment, Forest and Clim....