The appellate tribunal dismissed the appeal and upheld the demand for service tax on amounts paid by the...

The appellate tribunal dismissed the appeal and upheld the demand for service tax on amounts paid by the appellants to the District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET). It was held that royalty is the consideration paid for the service rendered by the government/mine owner to the mine lessee, on which service tax is payable under reverse charge mechanism. The amounts paid to DMF and NMET by the polluter/lessee are akin to royalty for the service of rehabilitating the mined area and surrounding regions as per the 'polluter pays' principle of environmental law. Since DMF and NMET are governmental authorities, the appellants are liable to pay service tax on such amounts under the reverse charge notification. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X