Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Service Tax RCM | Royalty Withheld by State for Mineral Procurement Under Form M/N Not Taxable: CESTAT Kolkata
CESTAT Kolkata rules that royalty deductions made by state authorities from contractors under Form M/N for mineral procurement do not trigger reverse charge liability under service tax law. This shields works contract sub-contractors from retrospective tax demands based solely on balance sheet entries, setting a critical precedent for mining and infrastructure contractors nationwide.