oe wrafea_ surged ona aa wd dare ware (2-6-1, Gu vada, dasha urea eT GERAD F aA, seers HT, STD (Phone No- 1-2610149 Email - wn03cgst@gmail.com) ; DIN-20211063WN0300228425 C.No. IV(Ad))104/AB/SCN/Div-C/2021/ | 7 Date- 4-\ to] 24 SHOW CAUSE NOTICE Whereas Shri Abhishek Bansal,Anupam Tiles,Borawar Road Makrana Distt- Nagaur (hereinafter referred to as “the noticee” also) are engaged in extracting of minerals by way of leasing/ licensing. The notice during the period from April, 2016 to June, 2017, appeared to have contravened the provisions of Section 67, 68, 69 and 70 of the Finance Act, 1994 (the Act for short) read with Rules 6, 4 and 7 of the Service Tax Rules, 1994 (the Rules for short), deliberately and willfully with intention to evade payment of Service Tax, in as much as the notice failed to obtain registration certificate, failed to file relevant ST-3 returns and failed to pay Service Tax under reverse charge amounting to Rs.20142/- (inclusive of cesses) on the taxable services received by them from Govt./Local Authority and thus appears liable for penal action under Section 77(A)(a), 77(1)(C), 77(2) and 78 of the Finance Act, 1994, as per the facts given and discussed below:~ 2. Service of giving the right to extract minerals by way of leasing/ licensing has been made a taxable service from 01.04.2016 and Service Tax for that service is payable by the service recipient under reverse charge mechanism. Accordingly, the Director, Department of Mines and Geology, Khanij Bhawan, Shastri Circle, Udaipur (herein after also referred to as DMG) was requested by the Joint Commissioner, Central Goods and Service Tax Commissionerate, Jodhpur vide letter C. No. V(16)66/AE/Royalty/JDR/ 2018/3401 dated 17.12.2018 and reminder of even No. 310 dated 18.02.2019 to provide the detail of amount collect on account of Royalty/ Dead Rent/ District Mineral Foundation (DMF)/ National Mineral Exploration Trust (NMET), paid during the period 01.04.2016 to 30.06.2017, by individual Mine Lease holders to Rajasthan State Government. DMG vide their email dated 19.2.2019 has provided the details of Royalty/ Dead Rent paid by individual Licensees/ Lease holders along with type of mineral viz. major or minor for which lease holder was given the license. It was further clarified that in addition to Royalty/ Dead Rent, amount was being collected on account of District Mineral Foundation (DMF) @ 30% of the royalty amount for major minerals and @ 10% of the royalty amount for minor minerals; and on account of National Mineral Exploration Trust (NMET) @ 2% of the royalty amount for major minerals and NIL for minor minerals. 3. Whereas, the notice was requested by the Superintendent, CGST Range-XV, Makrana vide letter C. No GL-3/3/ST-Royalty/MKN/2017/1369 dated 11.03.2019 and 1816 dated 05.04.2019 to provide the details of Service Tax deposited on the amounts paid by them to the State Government, on account of Royalty/ Dead Rent/ District Mineral Foundation (DMF)/. National Mineral Exploration Trust (NMET), during the eriod 01.04.2016 to 30.06.2017, but the noticee has failed to provide the required vetails. The assessce vide his reply letter dated 13.05.2019 submitted that the Hon'ble Supreme court by its interim order dated 11,01.2018 stayed the payment of service tax gn grant of mining lease/royalty. Since the Hon'ble Court stayed the payment of service taxon grant of mining lease /royalty in the case of Udaipur Chamber of Commerce and Industry and others but Hon’ble Court has not specifically mentioned about not to issue Show Cause Notice and the petition is still pending in the Hon'ble court. In this citwation, this office has no option except to determine the Service Tax liability on whole per list provided by Rajasthan State Government DMG) paid by assessee by amount (as Reed & 70r yan?treating the same received against the erstwhile Finance Act, 1994, 4. Whereas, “Service” defined under Section 65B(44) of the on examination of the details provided by the DMG, it was found that during the period from 01.04.2016 to 30.06.2017, the noticee had paid amount of Rs 122073/- as deadrent/Royalty (detailed further under Para 16) against the service feceived by the noticee. Further, being a Minor Mineral, they also paid amount on account of DMF of Rs 12207/- (10% of Rs 122073/-). Taxability of transactions 5. _ As per Section 65B(44) of the Finance Act, 1994, service” means any activity eatried out by a person for another for consideration, and includes a declared service, but shall not include the following activity:- (a) an activity which constitutes merely, — (i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or (i) such transfer, delivery or supply of any goods which is deemed to be a sale within the meaning of clause (29A) of article 36 of the Constitution; or (ii) @ transaction in money or actionable claim; (b) a provision of service by an employee to the employer in the course of or in relation to his employment; (c) fees taken in any Court or tribunal established under any law for the time being in force. 6. Further, as per Section 65B(51) of the Finance Act, 1994, any service on which Service'Tax is leviable under Section 66B of the Act. As per Section 668 of the Finance Act, 1994- “There shalll be levied a tax (hereinafter referred to as the Service Tax) at the rate of fourteen percent on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed”. From the above legal provision, it appears that any activity which meets the characteristics of a “service” is taxable, unless specified in the Negative list. Further as. per section 93 of the Finance Act, 1994, exemption from payment of Service Tax in Tespect of certain specified services is given by way Notifications. Thus, it appears that an activity which meets the characteristics of a ‘service” is taxable unless specified in the Negative list, or is otherwise exempted by a notification issued under Section 93 of the Act. “taxable service” means Negative list of services applicable to Government services 7. __ In the negative list system, all services excluding those specified in the negative list are subjected to Service Tax. The services provided by the Government are contained in the Clause (a) of Section 66D, which specifies that services provided by government or local authority except to the extent provided therein are not-taxable. As per Section 66D{a)(iv), till 31.03.2016 services other than ‘support services’ provided by Government to a business entity were in the negative list of services and hence were outside the scope of levy of Service Tax. However with amendment to Section 66D(a)(iv) of the Finance Act, 1994 (with effect from 01.04.2016), ‘any service’ provided by Government or a local authority to business entities were made liable to Service Tax. The extract of Section 66D(a)(iv) of the Finance Act, 1994 as amended with effect from 01.04.2016 is as under: - ‘The Negative list comprises the following services, namely: - (a) services by Government or a local authority exeluding the following services to the extent they are not covered elsewhere- (i) __ services by the Department of Posts by way of speed life insurance and agency services provided t Government; Post, express parcel post, (0 a person other than(i) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; transport of goods or passengers; or (iv) any service, other than services covered under clauses (i) to (iii) above, Provided to business entities; 8. _ From the above legal provisions, it appears that w.e.f. 01.04.2016, apart from the services specified under sub-clause (i) to (iii, any service provided by government/ local authority to the business entities got excluded from the scope of Negative List of services. It appears that giving the right to extract minerals by way of leasing/ licensing for consideration by the Government of Rajasthan is an act of ‘service’ as per section 65B(44) of the Finance Act, 1994 and squarely covered under the phrase ‘any service’ used in the definition. Thus, it appears that w.e.f. 1.4.2016, giving the right to extract minerals by way of leasing/ licensing is not covered under the scope of Negative list of service, under Section 66D of the Finance Act, 1994. Position of exemption under Notification No. 25/2012 dated 20.06.2012 9. _As per the Notification 25/2012- ST dated 20.06.2012 as amended by Notification No. 22/2016-ST dated 13.01.2016 (SI. No. 61) services provided by Government or a local authority by way of assignment of right to use any natural resource, where such right to use was assigned by the Government or the local authority before the 1st April, 2016 is exempted from payment of Service Tax. The relevant entry in the said Notification is as follows: - . Service provided by Government or a local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Government or the local authority before 01.04.2016; Provided that the exemption shall apply only to Service Tax payable on one time charge Payable, in full upfront or in instaliments, for assignment of right to use such natural resource.......” 10. From above, it appears that the exemption has been given to services in respect of assignment of right to use natural resources which have been granted by the Government/ Local Authority before 01.04.2016. However, the exemption is limited to one time charges (whether paid in full or in installments) for assignment of right to use such natural resource. In other words, the periodic charges/ payments made by the business entities to Government or a local authority have been kept out of the exemption and thus would be taxable. As the noticee is paying the royalty and dead rent to the Government of Rajasthan on monthly basis depending upon the sale quantity of mineral produced from the mine allocated by the Government. Hence the royalty and dead rent payable on monthly basis is not exempted from payment of Service Tax. 11. From the above, it appears that the service of giving the right to extract minerals by way of leasing/ licensing is neither covered under the Negative List of Services nor covered under the exemption Notifications and therefore, squarely falls under “service” under Section 65B(44) and ‘Taxable Service’ as per section 65B(51) of the Finance Act, 1994. Liability for payment of Service Tax 12, Itappears that as per the provision of Section 68(1) the Service Tax is payable by the person providing taxable service in such manner and within such period as cified. Further as per Rule 2(1) of Service Tax Rules, 1994 read with Notification No. Spe 012.ST dated 20.06.2012, in respect of taxable services notified under Section rae of the Act, service recipient has been made liable to pay Service Tax instead of oewjice provider under reverse charge mechanism method. As per the said Notification, the services provided by the Government or local authority, EXCEPT - (i) renting of so ewable Property Service and (i) services specified in sub-clauses (i), (i) & (ii) of ainiise (a) of Section 66D of the Finance Act, 1994, to any business entity, the service crcipient is liable to pay Service Tax. As discussed in the preceding paragraphs suprathe Government of Rajasthan has provided the license to explore and production of minerals in the areas within the State of Rajasthan to the notice for the consideration in the form of royalty/ dead rent/ DMF/ NMET. Thus, as a recipient of service, the noticee is liable to pay Service Tax in respect of services viz. right to use of natural Tesources provided by Government of Rajasthan under reverse charge mechanism. Point of Taxation in case of government services 13. As per Rule 7 of Point of Taxation Rules, 2011 (effective upto 13.04.2016) in respect of persons required to pay Service Tax as recipient of service, point of taxation shall be the date on which payment is made. If the payment is not made within three months from the date of invoice, point of taxation shall be the date immediately following the said period of three months. Further vide Notification No. 24/2016-ST dated 13.04.2016, fourth proviso to Rule 7 has been inserted which provides for determination of point of taxation in respect of services provided by Government or local authority to any business entity. As per said proviso to Rule 7 of Point of Taxation Rules, 2011, the point of taxation shall be earlier of the dates on which payment becomes due as specified in the invoices, bill or any other documents issued by the Government or payment for such services is made. Thus, as per the said provision the point of taxation shall be the date on which payment becomes due as specified in the Mining lease. Valuation and Quantification of Service Tax liability 14, _ As per clause (i) of sub-section (1) of Section 67 of the Act, where the provision of service is for a consideration in money, the value shall be the gross amount charged by the service provider for such service provided or to be provided by him. Thus, it appears that the gross amount charged by service provider for providing a service constitutes the taxable value for the purpose of charging Service Tax. Further, consideration includes any amount payable for providing taxable service. Though the word ‘consideration’ has not been specifically defined in the Service Tax provisions, in simple terms, ‘consideration’ means quid pro quo, i.e. ‘something in returns’. It is an advantage flowing from one to another. Thus it appears that royalty/ Dead Rent/ DMF/ NMET paid to Government of Rajasthan in lieu of granting the right to extract minerals is a ‘consideration’ for the purpose of the Act. 15. The above view of the department regarding taxability of the consideration collected by the DMG has been upheld by the Hon’ble Rajasthan High Court in their judgment passed in DB Civil Writ Petition No. 14578 of 2016, in the case of Udaipur Chambers of Commerce and Industries Vs. UO! - 2018(8)GSTL. 170(Raj.), wherein the Hon'ble Court in Para 22 has held that: “royalty is nothing but a “consideration” to have mining operations in the leased area on execution ‘of mining lease. Its a part of agreement arrived between the parties to have lease of a mining area to undertaking mining operations. The royalty being “consideration” certainly places assignment of right to use natural resources deposited in the leased area as a “service” as defined under Section 65B(44) of the Act of 1994, according to which, any activity carried out by a person for another for consideration is a service.” 16. From the above, it appears that royalty/ Dead Rent/ DMF/ NMET paid by the noticee appears to be the taxable value for the purpose of computation of Service Tax liability payable by the notice. Since the notice has not furnished the details of amount paid to Government in the form of royalty and dead rent for granting the rights to extract minerals. Thus as per the details provided by the DMG noticee has paid total amount of Rs 122073/- as Deadrent and Royalty is taken into consideration. Further, being a minor mineral, the noticee is liable to pay 10% and 0% of the royalty amount to DMG on account of “District Mineral Foundation Trust (DMF) and “National Mineral Exploration Trust (NMET)", as required under Section 9B & 9C respectively of the Mines and Mineral (Development and Regulation] Act, 1957. It appears that the Lease holders/ licensees are also liable to pay service tax under RCM on amounts collected on account of DMF and NMET by DMG, as any Lease holder/ licensee not paying these amounts would not be able to extract natural resources and therefore payment of these amounts js a consideration before allowing extraction of natural resource. As per the details provided by the DMG, the noticee has paid total amount of Rs 122073/- as deadTent/royalty, Rs 12207/- as DMF Government of Rajasthan, computation of Service Tax a: during the period April, 2016 to June, 2017 to the which constituted the taxable value for purpose of S per detailed below: - (Amount in Rs.) ‘Amount pald to DMG as Deadrent/Royalty/DMF/NMET apse: Total | Service| Tax Period | Royalty Deed | Total | pur @| met | taxabie| TH bia aa 10% of |@2% of | Value | Rate | (Inclusive apace nati of Cesses) Apr-16 62313 | 122073 to) || e5%é0 12207 | 0 | 134280} 15% | 20142 Jun.’17 17. Whereas in the financial year 2016-17 applicable rate of service tax was 14.50% and 15% due to non submission of relevant invoices/bills and details of monthly payment on account of Royalty /deadrent/DMF/NMET to the State Govt. for the period 2016-17 by the notice, Therefore the rate of Service Tax has been taken as 15%(being higher) for calculation of Service Tax. 18. Whereas, the activities of service undertaken by the notice is covered under the scope of the provisions of Section 65B(44) of the Finance Act, 1994 as taxable service and the same are not services listed under Section 66D of the Finance Act, 1994. Further, Central Board of Excise and Customs vide Circular No. 192/02/2016-ST dated 13.04.2016 has clarified that Service Tax is applicable on the amount of royally paid or payable to the Government for assignment of rights to use of natural resources. Hence, the same are taxable under the provisions of Section 66B of the Finance Act, 1994 and the notice who has received the said services is liable to pay Service Tax under reverse charge mechanism. For this, the person liable to pay Service Tax was required to obtain registration under the provisions of Rule 4 of the Service Tax Rules, 1994 read with Section 69 of the Finance Act, 1994, assess his tax liabilities on the value of taxable service in terms of the provisions of Section 67 of the Finance Act, 1994, pay Service ‘Tax in terms of the provisions of Rule 6 of the Service Tax Rules, 1994 read with Section 68(2) of the Finance Act, 1994 and file returns of Service Tax in terms of the provisions of Rule 7 of the Service Tax Rules, 1994 read with Section 70 of the Finance Act, 1994. In case of non-payment with the intent to evade payment of Service Tax, the same is liable to be recovered from the person liable to pay the same along with interest for the delay in such payment as provided under Proviso to Section 73(1) of the Finance Act, 1994 and Section 75 ibid. respectively. The noticee appears also liable to penal action under Section 77(1)(a) of the Act for not obtained registration by contravening the provisions of Section 69 of the Act read with Rule 4 of the Rules,under Section 77(1)(c) of the Act for not providing information called for by the Range Superintendent, under Section 77(2) of the Act for not filing statutory ST-3 returns for impugned period’ by contravening the provision of Section 70 of the Act read with Rule 7 of the Rules and under Sections 78 of the Finance Act, 1994 for contravention of provisions of the Section 68 of the Act read with Rule 6 of the Rules & willfully suppressing the facts. 19. _ Inview of the above, it appears that the noticee was required to obtain registration ‘jer the provisions of Rule 4 of the Service Tax Rules, 1994 read with Section 69 of vee rinance Act, 1994; was liable to pay Service Tax and have not paid total Service Tax tne inting to Re 20142/- as shown in table above, payable in terms of the provisions oe le 6 of the Service Tax Rules, 1994 read with Section 68 of the Finance Act, 1994, ot ee Saiue of taxable esrvice viz. Rir'194280/sineeeiietty. tie acuees during the oa a Pn ‘April, 16 to June, 17; have not filed Service Tax returns in such manner in aes of the provisions of Rule 7 of the Service Tax Rules, 1994 read with Section 70 of ihe Finaice Act, 1994.the Department tae that the noticee has willfully suppressed vital facts from Proof re mane not Paving Service Tax on the taxable services received. service lies solely pen theo the proper and due payment of Service Tax on the taxable Te ice Teceiver, who is receiving taxable service. It is the the noticee. The of chapter V of the Fi and Secti ©5B(44) of chapter V of the Tinanoe Act 19 Finance Act, f the Finance Act, 1994 read with Section 994; Rule 4 of the Service Tax Rules, 1994 » 1994; Rule 7 of the Service Tax Rules, 1994 21. Further, the noticee was operating under self assessment procedure and they Should have followed correct and proper procedure and should heve paid due Service Tax on their entire taxable service value. This fact came to light only when information Was gathered by the department from DMG. If the information was not gathered, the fact of non-registration/ non-payment of Service Tax by the noticee would have gone totally unnoticed and undetected. It also appears that they have willfully withheld Substantial information bearing huge government revenue implication from the knowledge of the Department. Furthermore, this deliberate act of non-payment of Service Tax and suppression of the relevant facts has resulted into intentional evasion of Service Tax. As they have willfully contravened the provisions of, inter alia, Section 68 of chapter V of the Finance Act, 1994 read with Rule 6 of the Service Tax Rules, 1994, extended period for issue of Demand-cum-Show Cause Notice is warranted under Proviso to sub-section (1) of Section 73 of the Finance Act, 1994 for recovery of non- payment of Service Tax along with interest under Section 75 of the Finance Act, 1994, By indulging in the said Act, it appears that the noticee have rendered themselves liable for penalty under Section 78 of the Finance Act, 1994. 22.1. Whereas, it appears that the noticee have, inter alia, contravened the provisions of Section 68 of the Finance Act, 1994 read with Rule 6 of the Service Tax Rules, 1994 and Section 66B of the Finance Act, 1994 read with Section 65B(44) of chapter V of the Finance Act, 1994; Rule 4 of the Service Tax Rules, 1994 read with Section 69 of the Finance Act, 1994; Rule 7 of the Service Tax Rules, 1994 read with Section 70 of the Finance Act, 1994, leading to evasion of Service Tax, as detailed in the foregoing paras, hence liable for penal action u/s 77 ibid also... 22.2 From the foregoing facts, it appears that: - (i) the noticee had failed to pay Service Tax amounting to Rs 20142/- (Inclusive of Cesses) on the taxable value of service provided by them during the period April’ 16 to June’l7 by contravening the provision of Section 68 of the Act read with Rule 6 of the Rules which, is recoverable from them in terms of the proviso to Section 73(1) of the Act along with interest in terms of Section 75 of the Finance Act; : : ii) the noticee appeared liable for penal action under Sections 78 of the Finance S Act, 1994 for aforesaid contravention of Section 68 of the Act read with Rule 6 at the Rules and willfully suppressing the facts; : ; iii] the noticee inspite of providing taxable service, has not obtained a istration, hence, they have contravened the provision of Section 69 of the aed with Rule 4 of the Rules, thus they appear liable for penal action under Section 77(1)(a) of the Act.liv) the noticee inspite of asking for information by the R.O., has failed to submit the required information and thus they appear liable for penal action under Section 77(1)(c) of the Act. (¥) the notice has not filed the statutory ST-3 returns for the impugned period in contravention of the provision of Section 70 of the Act read with Rule 7 of = Rules as such they are liable to for penal action under section 77(2) of 1 Act. 23, Now, therefore Shri Abhishek Bansal,Anupam Tiles,Borawar Road Makrana Distt-Nagaur is hereby called upon to show cause and explain to the Deputy Commissioner, Central Goods & Service Tax, Division-C, 2-E-1, 4th Floor, Subhash Enclave, Opposite Central School No. 1(AF), Jodhpur within 30 days from the date of receipt of this Noticee as to why () Service Tax amounting to Rs. Rs 20142/- (Inclusive of Cesses) should not be demanded and recovered from them in terms of proviso to Section 73(1) of the Finance Act, 1994 along with appropriate interest in terms of section 75 of the Act; (i). the noticee appeared liable for penal action under Sections 78 of the Finance Act, 1994 for aforesaid contravention of Section 68 of the Act read with Rule 6 of the Rules and willfully suppressing the facts; (ii) “the ‘noticee inspite of providing taxable service, has not obtained registration, hence, they have contravened the provision of Section 69 of the Act read with Rule 4 of the Rules, thus they appear liable for penal action under Section 77(1)(a) of the Act. (iv) thenoticee inspite of asking for information by the R.O., has failed to submit the required information and thus they appear liable for penal action under Section 77(1)(c) of the Act. (v)~ ‘the noticee has not filed the statutory ST-3 returns for the impugned period in contravention of the provision of Section 70 of the Act read with Rule 7 of the Rules as such they are liable to for penal action under section 77(2) of the Act. 24, Noticee is further directed to produce at the time of showing cause all the evidence upon which they intend to rely in support of their defense. They are also directed to state whether they would like to be heard in person before the case is adjudicated. If no mention was made in the written reply, it would be presumed that they do not desire a personal hearing. 25. Notice may also like to opt for settlement of the present case in terms of the provision contained under Chapter V of the Central Excise Act, 1944 which is made applicable by Section 83 of the Finance Act, 1994 to the Service Tax matters, subject to fulfillment of the condition contained therein. 26. _Noticee is also informed that in terms of second and third proviso to section 78(1) of the Finance Act, where Service Tax demanded in show cause notice and interest payable thereon under section 75 is paid within thirty days of the date of communication of the show cause notice, the amount of penalty liable to be paid shall be fifteen percent of the duty demanded subject to the condition that such reduced penalty is also paid within the period so specified and proceedings in respect of such Service Tax, interest and penalty shall be deemed to be concluded. : 27. _Ifno cause is shown, against the action proposed to be taken within 30 day the receipt of this notice or they do not appear before the adjudicating Ratlinty Mion the case is posted for hearing, the case will be decided ex-parte on the basis of fe available on record without making any further reference to them. — 28. Further, section 174(2) of Central Goods & Se in spite of amendment of Finance Act, 1994, in terms the investigation, inquiry, verification, assessment Tvices Tax Act, 2017 Provides that of Section 173 of CGST Act, 20 17, Proceeding, demand, adjudicationne kee ae ceeding under the Finance Act, 1994 are not affected and the said . enforced as if the said Act has not been so amended or repealed. 29. may be taken against them or any other persons concerned with the acts, as mentioned in this notice or any other law for the time being in force. This show cause notice is being issued without prejudice to any other action that 30. The Relied upon Documents (RUDs) for the issuance of this shown cause notice are as under:- (i) | The Superintendent, CGST Range-XV, Makrana letter C. No GL-3/3/ST- Royalty/2017/1369 dated 11.03.2019 and even no. 1516 dated 05.04.2019 written to the noticee. (ii) Relevant row of the Email dated 19.02.2019 received from the Department of Mines and Geology, Udaipur is as under:- 8. | Off | Lease No. Lessee | Leas | Mine | Tota | Total | Dead | Roya No. | ce Name |e |ral |1No.|RLT. | rent | Ity Nam Type | Type | of e Rav ana 7612 | ME, |ME/AJM/Minor | Shri ML |Mino [17 _ | 59760 | 62313 | 15714 Ajm | /ML/18/2000 | Abhishek r er Bansal Me. oem tank CGST, Division ‘C’, Jodhpur REGD. A.D.: Shri Abhishek Bansal, Anupam Tiles, Borawar Road, Makrana Distt-Nagaur Copy to: - 1, t, Central Goods and Services Tax, Rang¢-XV, Makrana along with copy of noticke to serve the same to concern and dated acknowledgement may provide to this\pffice for office record. Notice Board, CGST Division- C, Jodhpur. ‘The Superintend Deputy Commissioner CGST, Division ‘C’, Jodhpuroat, me AHO, tava NW MARKET 25 'SE9-200110 twa O-wndiOeer ewe Gl W3/Mok/st Rovalror7 16 g TELEPHONE No.0 No. ' ate-11.03 2019 M/s Sn Abhishek Bansal Aoupam Tiles,Borawar Road Makeana Distt Nagaur Sub: Levy of Service Tax on “Dead fe Renard Ds you are okepuectenet by Government ora toca authority to w business entity e ‘made taxable under reverse charge mechanism w 61.1" Apa 2016 Aecandingly, lartications a cana xt Le tance, Department of "2/07/2016 S¥ dated 13" npr! 2016 regarding service of the ¥ Government a local suthonty toa business entity. Thus he depariment of mines & Geology against leasing of 12° mechanssm and none of the exemption has been strove fact you requested to mon, whether you are regstered yousell under erstwhile lave 1150 please furnsh the relevant S13 retuins forthe pened April 2016 to une 2017. 1f you ‘not registered yoursell than you are also requested to prove the details of vent/dead rentlease and ‘yally paid by you to the department of mines & Geology aguinst leasing of mines d 20) ng the period Apel, © Hone, 2017 withun 03 days trom date of receipt atv eter atherwise penal action may Ue tated gainst You as per law Matter Most Urgent. ayrahe onters warton ES Saar ath daa, XV, area tes a a a, 1A \a@MarKeT TELEPHO! A 9 ELEPHONE NO.-01588-240110, EMAIL 1D-wn0305@gmail.com C.No.GL-3/3/Mak/ST-Royalty/2017/ | S) Date-05.04.2019 To, sir, M/s Shri Abhishek Bansal Anupam Tiles,Borawar Road Makrana Distt-Nagaur Sub: Levy of Service Tax on “Dead Rent and Royalty” -Regarding Please refer to this office letter C. No. GL-3/3/Mak/ST-Royalty/2017/1369 dated 11.03.2019 whereby itis submitted that any service provided by Government or a local authority to a business entity except as exempt or in negative list, has been made taxable under reverse charge mechanism wef. 1" April 2016. Accordingly, clarifications are issued by the Government of India, Ministry of Finance, Department of revenue (Tax research unit) vide Circular No. 192/02/2016-ST dated 13” April 2026 regarding service of the assignment of right to use natural resources by the Government 2 Jocal authority to a business entity. Thus rent/dead rent/lease ‘and royalty paid by you to the dey mine: partment of mines & Geology ageinst leasing of .¢ has been made taxable under reverse charge mechanism and none of the exemption has Been provided to small scale assessee erstwhile Service Tax law, if s0 PI 2017. If you have not reel rent/lease and royalty paid PY the period April, 2016 to June, may be initiated agains Cn the above fact, itis once again requested to inform, whether you are registered yourself under tease furnish the relevant ST-3 returns for the period April 2016 to June stered yourself than you are als0 requested to provide the details of rent/deat you to the department of mines & Geology against leasing of mines during + 2017 within 03 days from date of receiPt of this letter otherwise penal action > 1 you as per law. Matter Most Urgent.