Area development charges allocated by Government to meet administrative expense is not consideration

Madhya Pradesh State Mining Pr. Commissioner (CESTAT Delhi) CESTAT Delhi held that allocation of area development charges by the State Government to the appellant to meet up its administrative expenses without performance of any service in exchange of the amount cannot be treated as consideration towards a service. Facts- The appellant was granted rights to mine sand, rock, phosphate, flag stone, and coal by the Madhya Pradesh State Government. In lieu of these rights, the appellant was required to pay royalty to the State Government. The mining operations were carried out by the appellant eit...