Service tax liability of entity engaged in mineral extraction: CESTAT Delhi Ruling

Shrawan Kumar Pathak Vs Commissioner of Central Excise & Central GST (CESTAT Delhi) The appellant is engaged in mining of minerals. It has obtained lease for the State Government of Madhya Pradesh. It paid royalties to the State. A demand of service tax of about Rs.2 crores, along with interest and penalties, on reverse charge basis, was confirmed on the appellant on such royalty paid to the State Government. Hence, appeal. The Hon’ble CESTAT, New Delhi allowed the appeal and set aside the order. It held: (i) the agreement was entered into prior to 01.04.2016 and hence, could not be subj...