CESC Ltd. Vs Commissioner of Central Tax (CESTAT Kolkata)
Summary: CESC Ltd. challenged the Order-in-Original dated 16.03.2023 passed by the Commissioner of CGST & Central Excise, Howrah, confirming a Service Tax demand of Rs. 14,70,63,835/- along with interest and penalty for April 2016 to June 2017. The demand related to royalty and other periodic payments made to the Government of West Bengal and alleged local authorities under reverse charge in connection with the assignment of the right to use coal from the Sarisatolli Coal Block. The mining rights had been conferred before 01.04.2016.
CESC had participated in the public auction of mining rights under the Coal Mines (Special Provisions) Act, 2015 and entered into a Coal Mine Development and Production Agreement dated 02.03.2015 with the President of India. The mining lease was deemed effective from 22.04.2015 and was subsequently formalised through a Mining Lease Deed dated 04.11.2015. The mining agreements required CESC to make several payments, including royalty under section 9 of the Mines and Minerals (Development & Regulation) Act, 1957, additional premium and fixed amounts, contributions to the District Mineral Foundation (DMF) under section 9B and National Mineral Exploration Trust (NMET) under section 9C, and Asansol Mines Board of Health (AMBH) fees under section 23 of the West Bengal Mining Settlements (Health and Welfare) Act, 1964.
