Service Tax on payments for CAMPA & NPV Clearances by Forest Department

Mahanadi Coalfields Limited (Orient Area) Vs Commissioner of CGST & Central Excise (CESTAT Kolkata) Whether payment made to the CAMPA Fund under the head Net Present Value (NPV), Compensatory afforestation, etc. to the Forest Department for obtaining various clearances for diversion of forest land for non-forestry purposes (mining) is a ‘Declared Service’ provided by the Government under Section 66E(e) so as to attract Service Tax liability under RCM. The issue came up for consideration before the Division Bench of the Kolkata Tribunal. The Tribunal after considering the objective of t...