Case Law Details
Rajeev Kumar Agarwal, Advocate
MNH Shakti Limited Vs Commissioner, Central Goods And Service Tax & Central Excise, Rourkela (CESTAT Kolkata)
Today, the Hon’ble CESTAT, Kolkata Bench, vide its Order No. 75689/2021 dated 10.11.2021 has pronounced its judgement on a very important and vexed issue, in favour of the assessee, which will benefit many Corporates which have received similar demand notices for levy of Service Tax on the compensation amount received by them, consequent to cancellation of coal blocks by the Hon’ble Supreme Court in 2014, by invoking the provisions of Section 66E(e) of the Finance Act, 1994.
The Hon’ble Supreme Court vide Order dated 24.09.2014 cancelled about 218 coal blocks which were allocated by the Central Government between 1993 and 2010. Subsequent to cancelation of coal block by Supreme Court, the Coal Mines (Special Provision) Act, 2015 was enacted. In terms of Section 9 of the said Act, the compensation amount was paid to the prior allottees out of the proceeds received by the Government from the new allottees of such cancelled coal blocks.
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