TMI Blog2022 (5) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... ating cancellation or not. The Appellant has not chosen to tolerate the cancellation. The cancellation was in pursuance of the order of the Hon ble Supreme Court and not as a result of a contract to tolerate cancellation. There was no consideration for tolerating the cancellation, only a compensation provided for statutorily for the investment made in the mines by the Appellant. Even in cases where any amount is received under a contract as a compensation or liquidated or unliquidated 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 receipt of compensation are by operation of law. They are like the receipt of a compensatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver the cancelled coal mines. 3. As per the provisions of Section 16 of the CMSPA, at the time of re-allocation of the cancelled coal blocks to the successful bidder, the prior allottees were to be compensated for the transfer of the right, title and interest in the land and mine infrastructure to the successful bidder. Accordingly, the Appellant being a prior allottee, received an amount of Rs.22,72,64,253/- as compensation in respect of land and mine infrastructure. 4. The Appellant was issued a Show Cause Notice dated 03.04.2019, alleging that it had tolerated the act of cancellation of the coal blocks by the Ministry of Commerce, Government of India, in lieu of which it received compensation, on which it was liable to discharge Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, Rourkela, in Final Order No.75689/2021 dated 10.11.2021 in Service Tax Appeal No.75218 of 2020 (reported in 2021 (11) TMI 427 CESTAT Kolkata). The assessee in that case was also a prior allottee of a coal block, the allocation of which was cancelled by the Hon ble Supreme Court vide order dated 24.09.2014. The Revenue authorities demanded Service Tax from the assessee therein on the amount of compensation received by it on the ground that the same was consideration for rendition of the declared service of tolerating the act of cancellation of coal blocks by the Ministry of Commerce, Government of India. The Tribunal, vide its order, allowed the Appeal of the assessee and held that the coal blocks were cancelled in terms of the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has received this amount as consideration for such tolerance. 11. The question of tolerating something and receiving a compensation for such tolerance pre-supposes that: a) the person had a choice to tolerate or not; b) the person chose to tolerate; c) such tolerance was for a consideration as per an agreement (written or otherwise) to tolerate; d) the tolerance was a taxable service. None of the above elements are present in the case under consideration. 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 Hon ble Supreme Court and not as a result of a contract to tolerate cancellation. There was no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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