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TMI Blog2023 (5) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... Government, which was taxable on a reverse charge basis against the receipt of services concerning grant of mining rights, the Bench held that for the purposes of levying service tax, the taxable event is construed at the time the service is provided or agreed to be provided - in order to determine whether levy of services tax is applicable on a particular activity, it is necessary to determine the point of time when such activity is provided or agreed to be provided and since the agreements between the appellant and the State Government regarding grant of mining right were executed prior to April 01, 2016, on which date the transaction in mining of right to use natural resources became taxable, the appellant would not be liable to pay the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. were predetermined and the quantum and pattern of such payments was well defined by way of distributed installments in closed manner and their due dates. Since, the terms and condition of the relevant agreements qualify both the conditions of the Notification No. 22/2016 - Service Tax dated April 13, 2016 (entry 61), by virtue of the dates of the agreements and the pre-determined nature of the taxable amount, therefore, the impugned activity and amount of the the kadhan cannot be brought under the ambit of Service tax net, holding immunity provided by the said notification. 3. Section 66D of the Finance Act, 1994 [the Finance Act] which contains the list of negative services, includes services by Government and local authority exclud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he agreements between the appellant and the State Government regarding grant of mining right were executed prior to April 01, 2016, on which date the transaction in mining of right to use natural resources became taxable, the appellant would not be liable to pay the service tax. The relevant portions of the decision are reproduced below: 13. The second category of demand pertains to the alleged short-payment of tax to the extent of dead rent surface rent paid by the appellant to the State Government, which has been held to be taxable on reverse charge basis against the receipt of service concerning grant of mining rights. 14. The contention of the learned counsel for the appellant is that the demand is not sustainable as the servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government; (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers; or (iv) Support services, other than services covered under clauses (i) to (i) above, provided to business entities 18. Thus, prior to 01.04.2016, barring a few exceptions, all services provided by the Government were covered under the negative list and accordingly, not subjected to service tax. 19. With effect from 01.04.2016, however, section 66D (a)(iv) of the Finance Act was amended and 'all services provided by the government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.2016 01.01.2018 for the year 2016-17 and similar/ identical manner for the remaining future periods of the contract / agreement. There are no provisions for payment of one-time payment/charges in all the contracts involved in the SCN dated 01.03.2017 / impugned order dated 30.08.2018. Hence, the assessee is not entitled for any exemption from payment of service tax on the payments (Royalty payable periodically) made on after 01.04.2016. 7. This ground has been taken in view of rule 7 of the Point of Taxation Rules 2011, which is evident from the Circular dated April 13, 2016 issued by the CBEC. The relevant portion of the Circular is reproduced below: 9. Whether Service Tax is payable on yearly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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