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2024 (1) TMI 5 - CESTAT NEW DELHILevy of service tax - reverse charge mechanism - payment of net present value by the appellant in the Compensatory Fund would be a consideration against a declared service under section 66E (e) of Finance Act or not - HELD THAT:- This precise issue arose for consideration before a Division Bench of Kolkata Bench of the Tribunal in M/S MAHANADI COALFIELDS LIMITED (ORIENT AREA) VERSUS COMMISSIONER OF CGST & CENTRAL EXCISE, ROURKELA. [2023 (7) TMI 1336 - CESTAT KOLKATA] and 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.
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