2026 (5) TMI 508

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....s raised the issue whether Service Tax is payable on royalty and other levies paid to the Government in April 2016 pertaining to the period March 2016, during which coal was removed from the mines. The learned Counsel for the appellant has submitted that the issue is no longer res-integra and has been decided by this Tribunal in the case of Principal Commissioner, CGST and C EX versus SR Trader [(2023) 9 Centax 407(Tri. Del) dated 09.05.2023] and also in their own case in South Eastern Coalfields Limited versus the Commissioner, CGST [Final Order No. 50262/2025 dated 30.01.2025] The Authorised Representative for the Department has very fairly accepted that the issue is covered in favour of the appellant in all these cases. 2. For the sak....

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....nt, which has been held to be taxable on reverse charge basis against the receipt of service concerning grant of mining rights. 14. The contention of the learned counsel for the appellant is that the demand is not sustainable as the service was received prior to 01.04.2016, when such services from the Government were not subject to tax. 15. The charging provision prescribing levy of tax is section 66B of the Finance Act and it is as follows: "66B. There shall be levied a tax (hereinafter referred to as the service tax at the rate of fourteen per cent on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to an....

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...., barring a few exceptions, all services provided by the Government were covered under the negative list and accordingly, not subjected to service tax. 19. With effect from 01.04.2016, however, section 66D (a)(iv) of the Finance Act was amended and 'all services provided by the government to a business entity were excluded from the negative list of services. Thus, services rendered by the government to a business entity became chargeable to service tax with effect from 01.04.2016. 20. In the present case, the appellant received services in relation to assignment of right to use natural resources from the State Government by virtue of the agreement dated 02.01.2016 and, therefore, the provisions of service tax, as were ....