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TMI Blog2024 (1) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... after placing the reliance upon the earlier decision of the Tribunal in MNH Shakti Ltd. [ 2021 (11) TMI 427 - CESTAT KOLKATA] , the Tribunal held that the clearance granted by Ministry of Environment, Forest and Climate Change for usage of the forest land falling under the said project for non forest purposes, cannot be considered as a Declared Service as defined under Section 66E(e) of the Finance Act, 1944 and the charges of NPV paid by the Appellant cannot be considered as Consideration for the said service. In view of the aforesaid decision of the Tribunal in Mahanadi Coalfields Ltd., the order passed by the Principal Commissioner cannot be sustained and is set aside - appeal allowed. - HON BLE MR. JUSTICE DILIP GUPTA , PRE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is a consideration against toleration by the Government. 5. It is on the aforesaid allegation that the show cause notice mentions that the government is providing a declared services under section 66E (e) of Finance Act i.e. by agreeing to the obligation to refrain from an act, or tolerate an act or a situation, or to do an act. Thus, as the amount paid by the appellant under the aforesaid Fund to the Government is a consideration against the declared services, the appellant would be liable to pay service tax under the reverse charge mechanism. 6. The appellant filed a detailed reply to the show cause notice dated 11.10.2021 and denied the allegation, but the Principal Commissioner by the impugned order has upheld the demand propo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal in MNH Shakti Ltd., the Tribunal held as follows:- 8. We observe that the payment of NPV to the CAMPA Fund has been made by operation of law and the Appellant has no choice whatsoever. Thus, the amounts paid cannot be called as consideration by any stretch of imagination, for the alleged service . Furthermore, the Government is duty bound by the Constitutional Mandate (Article 48 of the Constitution of India) and by the Parliament (The CAMPA Act, 2016, Forest Conservation Act 1980) to collect the charges for granting diversion of forest land for non-forest purposes like mining to preserve, conserve and regeneration of lost ecological balance. 8.1 When a patch of forest is diverted for non-forestry purposes, its implicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... None of the above elements are present in the present case. The appellant had no choice of tolerating cancellation or not the appellant has not chosen to tolerate the cancellation. The cancellation was in pursuance of the order of the Supreme Court and not as a result of a contract to tolerate cancellation. There was no consideration for tolerating the cancellation, only compensation provided for statutorily for the investment made in the mines by the appellant. 7. Even in cases where any amount is received under a contract as compensation or liquidated or un-liquidated damages, it cannot be termed Consideration . This case is not even a case of payment under a contract. Both the cancellation of the allocation of the blocks and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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