CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL ALLAHABAD REGIONAL BENCH - COURT NO.II (Arising out of Order-in-Appeal No.146/ST/APPL/ALLD/2025 dated 13/08/2025 passed by Commissioner (Appeals) Customs, Central Excise &

Service Tax, Allahabad)

Mr. Ravi Kumar Agrawal, …..Appellant (S/o Late Sri Vijay Kumar Agrawal, Hamid Nagar, Purab Mohal Robertsganj, Sonbhadr-231216)

VERSUS Commissioner of Central Excise &

CGST, Varanasi ….Respondent (CGST & CX, 38 MG Marg, Allahabad)

APPEARANCE Shri Yatish Chandra Mishra, Advocate for the Appellant Shri Santosh Kumar, Authorised Representative for the Respondent CORAM: HON’BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL)

FINAL ORDER NO.70054/2026 DATE OF HEARING : 23 February, 2026 DATE OF DECISION : 23 February, 2026 SANJIV SRIVASTAVA:

This appeal is directed against Order-in-Appeal No.146/ST/APPL/ALLD/2025 dated 13/08/2025 passed by Commissioner (Appeals) Customs, Central Excise & Service Tax, Allahabad. By the impugned order following has been held:- “Therefore, in light of discussions made in the preceding paras, I reject the appeal filed by the appellant both on the grounds of being time barred as well as being devoid of merit. I find no infirmity in the impugned order and hold the same to be legal and proper. The appeal is accordingly disposed of in the above terms.”

2.1 Appellant was not registered with the Department. On the basis of specific information received that appellant was not paying service tax on royalty/ license fees paid to the government of Uttar Pradesh, an investigation was initiated against the appellant.

2.2 It was observed that UP Government through its Directorate of Geology & Mining, U.P. inter-alia engaged in exploration of base metals & high value minerals, monitoring of collection of royalty, providing technical know-how, basic facility to the entrepreneurs and assistance in maintain quality control at the operating mines, provided the services of rights to use natural resources to the licensees and in lieu of that, the said licensees are paying Royalty to the Government of Uttar Pradesh.

2.3 In terms of Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957, the holder of mining lease shall pay royalty in respect of any mineral removed/consumed.

2.4 The right to use the natural resources falls squarely within the definition of taxable services as provided under Section 65B of the Finance Act, 1994, as amended. In terms of amended Notification No. 25/2012-Service Tax dated 20.06.2012 through Notification No. 22/2016-Service Tax dated 13.04.2016 read with Circular No.192/02/2016-Service Tax dated 13.04.2016, any activity undertaken by Government or a local authority against a consideration constitutes a service and the amount charged for performing such activities is liable to service tax.

2.4 As per Notification No.30/2012-ST dated 20.06.2012 as amended by Notification No.18/2016-ST dated 01.03.2016, services provided by the Government or a local authority to any person are leviable to service tax under Reverse Charge Mechanism and 100% of the service tax liability is to be discharged by the service recipient.

2.5 To ascertain the exact quantum of service tax liability, the appellant was requested to submit details of Royalty paid, service tax paid, and other related details/documents vide letter

23.06.2021 and subsequent reminders. As there was no response, Summons dated 18.09.2021 was issued to the appellant. However, neither the party nor any representative appeared for tendering statement. The information was collected by the Mining Officer, Robertsganj, Sonebhadra vide letter F. No. 2939/ /2021 dated 15.09.2021 provided details of Royalty खनिज paid by Lease Holder. On the basis of above, tax liability was calculated as per table below:- (Amt. in Rs.)

2.6 Show cause notice dated 18.10.2021 was issued to the appellant invoking extended period of limitation and asking them to show cause as to why:-

“(i) An amount of Service Tax (including applicable cesse