2024 (9) TMI 1826

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....e parties. 3. We find that the said issue has already been examined by this Tribunal n the case of M/s. National Aluminium Company Ltd. v. Commissioner of GST, Excise & Customs, Bhubaneswar [Final Order No.76921 of 2024 dated 03.09.2024 in Service Tax  Appeal No. 75500 of 2024 - CESTAT, Kolkata], wherein it has been observed as under: - "The appellant is in appeal against the impugned order wherein the service tax has been charged on the water charges paid to the Government of Odisha for supply of water against the charges as per the specified rate stipulated in terms of the Agreement for the period April 1, 2016 to June 30, 2017. 2. The facts of the case are that the appellant is engaged in the manufacture of aluminium. 2.1 T....

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....volved in this matter is whether the appellant is liable to pay service tax in terms of Section 65B (44) of the Finance Act, 1994 under the category of "allocation/auction of natural resources" or not ? The said issue has been examined by this Tribunal in the case of Sasan Power Limited (supra), wherein this Tribunal has observed as under: "16. Section 40 of the Madhya Pradesh Irrigation Act, as noticed above, deals with supply of water for industrial, urban or other purposes and it provides that the charges shall be as agreed upon between the State government and the company and fixed in accordance with the rules made under the Act. Rule 71A also provides that water may be supplied with the prior permission of the State government for a....

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....ernment. 19. The appellant is, therefore, justified in asserting that the Agreement executed between the appellant and the government is for supply of water for which charges are paid by the appellant on the basis of volume of water drawn and it is not a case of assignment of right to use natural resources of the government. 20. In this view of the matter no service was provided by the government to the appellant. The impugned order, therefore, deserves to be set aside on this ground alone." 7. As the issue in this case has been examined by this Tribunal in the case of Sasan Power Limited (supra), we hold that the payment made by the appellant for water charges, is not liable to be service tax during the impugned period for allocat....