10 hours ago
Petroleum dept gets 6,315 cr tax breather
Jaipur: The Custom Excise and Service Tax Appellate Tribunal in New Delhi rejected a decision of CGST Jodhpur, providing relief to the state petroleum department in a Rs 6,315 crore service tax case.
Principal secretary (Mines and Petroleum) T Ravikanth said the petroleum department effectively advocated and secured the significant relief based on a clarification that states mining rights are not "auxiliary services" and are exempted under the negative list until March 2016.
He mentioned that in the guideline issued by Central Board of Indirect Taxes and Customs on June 20, it was stated that mining rights are not ancillary services and are exempted under the negative list.
The Central Appellate Tribunal passed this decision, accepting the stand of the state govt.
The state receives dead rent and royalty on crude oil and natural gas production and leases in Barmer and Jaisalmer. Jodhpur CGST considered the dead rent and royalty received by the state govt as rent and imposed tax on it along with interest and penalty. tnn
