AI Drafter 
TaxTMI 
TaxTMI 
2023 (11) TMI 1446
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.... (NPV) of such diverted land so as to utilize the said amount for getting back in long run the benefits which are lost by such diversion. The underlying principle for recovery of NPV is that the plantations raised under the compensatory afforestation scheme could never adequately compensate for the loss of natural forests as the plantations require more time to mature and even then, they are a poor substitute to natural forest. The object of amount of NPV is to utilize the fund to conserve the ecology without in any manner affecting proprietary rights of the State Government over the land, timber or the minerals. The payment of NPV is purely for protection of environment and not in relation to any propriety rights. Campa Fund has been created having regard to the principles of intergenerational justice and to undertake short term and long-term measures. The departmental officers contended that such payment of NPV to Govt. of India, appeared to be in lieu of Declared Service of toleration of the act of use of forest land for non-forest purposes rendered by Government and attracts service tax under reverse charge mechanism in terms of Notification No. 30/2012-Service Tax dated 2....
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....t case. The appellant had no choice of tolerating cancellation or not. The appellant has not chosen to tolerate the cancellation. The cancellation was in pursuance of the order of the Supreme Court and not as a result of a contract to tolerate cancellation. There was no consideration for tolerating the cancellation, only a compensation provided for statutorily for the investment made in the mines by the appellant. Even in cases where any amount is received under a contract as a compensation or liquidated or unliquidated damages, it cannot be termed 'Consideration'. This case is not even a case of payment under a contract. Both the cancellation of the allocation of the block and the receipt of compensation are by operation of law. They are like the receipt of a compensation when one's land is acquired by the Government in public interest or the payment to a Government employee of an amount equal to the salary for unused leave at the time of his/her retirement. It is unthinkable to say that the land-owner has tolerated the acquisition of his land as per an agreement and charge service tax on the compensation. Equally unthinkable is to say that the Government employee has tol....
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....iled as :-Mahanadi Coalfields Ltd vs Commissioner, CGST & Central Excise, Rourkela (Final Order no. 76176/2023, dated 13.07.2023 in Service Tax Appeal no. 75432 of 2022) wherein it has been held that no service tax is payable on deposit made to the CAMPA Fund. (x) Thus, the Appellant submitted that Section 66E(e) is not applicable in the facts of the instant appeal. Accordingly, the Appellant prayed for setting aside the demands confirmed in the impugned order. 4. The Ld. A.R reiterated the findings in the impugned order. 5. Heard both sides and perused the appeal records. 6. The issue to be decided in the present appeal is whether the Appellant has rendered any Service as defined in clause (44) of Section 65B of the Finance Act, 1944. As per clause (44) of Section 65B, 'Service' means any activity carried out by a person for another for consideration, and includes a 'Declared Service'. Clause (22) of Section 65B of the Act defines 'Declared Service' as "an activity carried out by a person for another for consideration and specified in Section 66E of the Act". The following activity has been specified in Section 66 E(e) of the Act, as 'Declared Service'. ....
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....ency. 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 no 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 question of tolerating something and receiving a compensation for such tolerance pre-supposes that:- (a) The person had a choice to tolerate or not; (b) The person had a choice to tolerate or not; (c) Such tolerance was for a consideration as per an agreement (written or otherwise) to tolerate; (d) The tolerance was a taxable service. None of the above elements are present in the present case. The appellant had no choice of tolerating cancellation or not the appellant has not chosen to tolerate the cancellation. The cancellation was in pursuan....