TaxTMI 
TaxTMI 
2026 (5) TMI 1016
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....enience, facts are being referred to from Writ Petition No.4514/2023. Facts of the case, in brief, are as follows:- 2. The petitioner - South Eastern Coalfields Limited (in short "SECL") is a Public Sector Undertaking and is a hundred percent subsidiary of Coal India Limited, and is engaged in the business of mining and selling of coal. The coal mines of SECL are spread across two states, namely Chhattisgarh and Madhya Pradesh. SECL operates 60 coal mines, of which 35 are located in Chhattisgarh State, while the remaining 25 are situated in Madhya Pradesh State. Out of these 60 coal mines, 40 are worked by the underground method of mining, while the remaining 20 are Opencast mines. The company is registered as an assessee under the Finance Act, 1994 and the CGST Act. 3. The respondent- GST Authorities issued a demand notice to the petitioner for service tax under Section 73(1) read with Section 73(1A) of the Finance Act, 1994, which are saved by Section 174(2) of the Central Goods and Service Tax Act, 2017 and the jurisdiction of the petitioner-SECL falls under CGST, Jabalpur Commissionerate. 4. The petitioner-SECL, being holder of mining lease/mineral bearing land, has....
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....s considered in detail the arguments put forth on behalf of the petitioner challenging the constitutional validity of the aforesaid Adhiniyam and arguments made by the State defending the same. The Writ Court, while considering the question of vires, dealt with the powers enshrined in the Constitution to the State Legislature to levy "tax" and under "Entries" given in legislative lists. 7. The Competent Authority of GST vide its Order-in-Original No.27-30/COMMR/ST/JBP/2022-23 dated 29.12.2022 has rejected all the contentions made by the petitioner. In Para 30(i) of the said Order-in- Original, the Competent Authority observed that since the nature of the levy was not challenged before this Court in M/s Neogy & Sons (supra), the Hon'ble Court did not discuss the nature of the levy under MPGASTVA, 2005. The above observations are incorrect, false and misleading as the Writ Court has clearly examined that the nature of the levy is a "tax on land" under List II, Entry No.49 of the VII Schedule read with Article 246 of the Constitution of India. Further, observation made in Para 30(vii), is as follows "................Therefore I, with due respect to the Hon'ble High Court, find that....
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....rges like Royalty, Dead Rent, DMF and NMET under the Mines And Minerals (Development And Regulation) Act, 1957, other charges in the name of MPGATSVA, 2005 and Forest Transit Fee to the Forest department of Madhya Pradesh State Government to the Mining department of Madhya Pradesh State Government, but has not paid Service Tax on the amounts of, MPGATSVA and Forest Transit Fee under Reverse Charge Mechanism. 11. Learned counsel for the respondent also submitted that the Mining Department of the State Government is not collecting the MPGATSVA from all the business entities/stakeholders, but it is exclusively being collected from the Mining Lease holders/Licensees only as a minimum annual Royalty. Similarly, the Mining Department of the State Government is not collecting the MPGATSVA from all the business entities/stakeholders, but it is exclusively being collected from the holders of the mineral-bearing land only for providing the services of improvement and development of rural infrastructure and roads in backward and mining areas. Similarly, the Forest Department of the Madhya Pradesh State Government is not collecting the Forest Transit Fee from all the business entities/stake....
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....Act, 1957. Therefore, in light of the submissions made above, the Hon'ble Court vide order dated 18.8.2006 in the case M/s Neogy & Sons (supra) rightly held that MPGATSVA, 2005 is not ultra vires of the powers of the State Government. 14. Further, learned counsel for the respondent submits that in light of the submissions made above, it is crystal clear that the dispute in the case of M/s Neogy and Sons (Supra) is totally different from the present case and as such, the petitioner cannot rely upon the judgment rendered by this Court in the case of M/s Neogy and Sons (Supra). Hence, the show cause notice dated 21.10.2021 issued to the petitioner for the demand of service tax on the amount of MPGASTVA paid to the State Government for the financial year 2016-17 to 2017-18 (up to June 2017), which was confirmed vide Order- in- Original dated 29.12.2022, is correct. Appreciation and Conclusion 15. The petitioners have filed this petition against the impugned Orders-in-Original dated 29.12.2022, 27.12.2022, 21.12.2023 and 28.12.2023. The said orders are appealable under Section 107 of the Central Goods and Services Tax Act, 2017 and despite that the petitioners have filed th....
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....Sons (Supra) held that the nature of levy under the MPGATSVA is a tax on land; therefore, the GST is not liable to be paid by the petitioners. The orders-in-original passed by the respondent-Authority are not orders without duration. The learned Authority has given its own interpretation to the amount collected under the Act and its utilisation. The said view is liable to be re-examined by the Appellate Authority and thereafter, the GST Tribunal. 19. In the case of M/s Neogy and Sons (Supra), the validity of MPGASTVA, 2005, was challenged on the ground of the competency of the State Government to levy a tax on a mineral. The Division Bench examined whether this tax is on land or on a mineral under the MPGASTVA, 2005 and finally concluded that it was a tax on the land and also held that the power of Union to regulate and control does not result in depriving the State of its power to levy tax or fee within their legislative competence. 20. The State Government enacted the Madhya Pradesh Gramin Avsanrachna Tatha Sadak Vikas Niyam, 2005, to provide for additional resources for the development of infrastructure and roads in rural areas with special emphasis on the backward and min....