Royalty Included but Other Levies Excluded from Transaction Value Due to Statutory Nature

South Eastern Coalfields Limited Vs Commissioner of Central Excise and Service Tax (CESTAT Delhi)

The judgment of the 9 Judges Bench of the Hon’ble Supreme Court in the case of Mineral Area Development Authority vs. Steel Authority of India held that “Royalty is not in the nature of tax”. The said judgment overruled the earlier 7 Judges Bench decision in India Cement Case which held the field for nearly 35 years holding that “Royalty is in the nature of tax”.

The outcome directly impacted Excise Appeals filed by several Assessee Coal Companies which were sub-ju

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