TMI Blog2018 (9) TMI 1522X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner on issues which were not raised before the Rajasthan High Court in the above referred decision. In the light of the fact that the Supreme Court in the appeal preferred against the decision of the Rajasthan High Court has been pleased to protect the appellants therein, at this stage the interests of both the sides can be duly protected if similar relief as granted by the Supreme Court is granted subject to the members of the petitioner associations filing undertakings to the effect that if ultimately they do not succeed in the petitions they shall pay the service tax on the royalty. Issue RULE. - R/SPECIAL CIVIL APPLICATION NO.8167 of 2017 With R/SPECIAL CIVIL APPLICATION NO.4603 of 2017 With R/SPECIAL CIVIL APPLICATION NO.46 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of a mining lease from the leased area, at the rate specified in the Second Schedule. It was submitted that royalty is to be computed on ad valorem basis in the manner prescribed under rule 64D of the Mineral Concession Rules. Clearly, therefore, royalty is a price of winning minerals from the land and represents the State's share in such minerals and that there is no element or provision of any service by the State in this respect and the levy of Service Tax is clearly ultra vires the Act. (4) Reference was made to a seven Judges Bench of the Supreme Court in the case of India Cement Ltd. Ors. v. State of Tamil Nadu Others, (1990) 1 S.C.C. 12, wherein the court has opined that royalty is a tax, and as such a cess on royal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as defined under section 65B(44) of the Finance Act, 1994, according to which, any activity carried out by a person for another for consideration is a service and hence, the notification dated 13.04.2016 is not at all in conflict with the enabling act i.e. the Finance Act, 1994 and the same does not suffer from any illegality. It was submitted that against the said decision, the writ petitioners therein had approached the Supreme Court by way of Special Leave to Appeal No.31503155 of 2018, and by an order dated 05.02.2018 the court has granted the interim relief as follows: Until further orders payment of service tax for grant of mining lease/royalty by the petitioners shall remain stay. (6) It was accordingly urged that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in the above referred decision. In the light of the fact that the Supreme Court in the appeal preferred against the decision of the Rajasthan High Court has been pleased to protect the appellants therein, at this stage the interests of both the sides can be duly protected if similar relief as granted by the Supreme Court is granted subject to the members of the petitioner associations filing undertakings to the effect that if ultimately they do not succeed in the petitions they shall pay the service tax on the royalty. (9) In the light of the above discussion, issue RULE. The learned standing counsel waive service of notice of rule on behalf of the respective respondents. By way of interim relief, it is ordered that until further or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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