𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗥𝗼𝘆𝗮𝗹𝘁𝘆 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 The Tribunal ruled: "Royalty and Forest Development Tax (FDT) paid by buyers of iron ore are not subject to Service Tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s JSW Steel Limited 𝗜𝘀𝘀𝘂𝗲 𝗥𝗮𝗶𝘀𝗲𝗱: The appellant, JSW Steel, was accused of owing service tax on royalty and FDT for iron ore auctions, under reverse charge, as payment for services related to natural resource usage rights

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that royalty payments under the Mines and Minerals Act, 1957, made by mining leaseholders, not buyers, are not subject to service tax, exempting JSW Steel as a service recipient. The appeal was allowed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s JSW Steel Limited vs. Commissioner of G.S.T. and Central Excise 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 40013 of 2022 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 22 January 2024

This decision clarifies that royalty and FDT payments made during auction purchases of iron ore are not subject to service tax.