CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH – COURT NO. – I Excise Appeal No. 56177 of 2013 [Arising out of Order-in-Original No. Commissioner-RPR-CEX-114-2012 dated

14.12.2012 passed by the Commissioner of Central Excise, Raipur]

M/s. South Eastern Coalfields Limited …Appellant Baikunthpur Area, CGM Office, Baikunthpur, Korba, Chhattisgarh VERSUS Commissioner of Central Excise and Service Tax, Raipur …Respondent Central Excise Building, Dhamtari Road, Tikrapara, Raipur, Chattishgarh - 492001 WITH E/56176/2013 E/56178/2013 E/56179/2013 E/56180/2013 E/56181/2013 E/56544/2013 E/56545/2013 E/56546/2013 E/56547/2013 E/56548/2013 E/56549/2013 E/56550/2013 E/56551/2013 E/60630/2013 E/60688/2013 E/60690/2013 E/60691/2013 E/60692/2013 E/60693/2013 E/60694/2013 E/60695/2013 E/60696/2013 E/60697/2013 E/52023/2014 E/52024/2014 E/52025/2014 E/52026/2014 E/50149/2015 and E/50150/2015 APPEARANCE:

Shri Rajeev Agarwal and Shri Sanjay Dixit, Advocates for the Appellant Mr. Bhagwat Dayal, Authorized Representative for the Respondent CORAM:

HON‟BLE MR. JUSTICE DILIP GUPTA, PRESIDENT HON'BLE MR. P.V. SUBBA RAO, MEMBER (TECHNICAL)

DATE OF HEARING: 19.01.2026 DATE OF DECISION: 06.02.2026 FINAL ORDER NO‟s. 50227-50256/2026 South Eastern Coalfields Limited ¹ is a Government of India undertaking and a subsidiary company of Coal India Limited. It is engaged in the business of mining and selling of coal at the mines located in the State of Madhya Pradesh and Chhattisgarh. Central excise duty at the rate of 5% ad-valorem was introduced on coal w.e.f. 01.03.2011 by the Finance Act, 2011, JUSTICE DILIP GUPTA. It was subsequently enhanced to 6% ad-valorem by the Finance Act, 2012. The various units/areas of the appellant were separately registered under Central Excise Act prior to 01.10.2013. The period in dispute in all the appeals pertains to periods prior to 01.10.2013.

2. The issue that arises for consideration in these thirty appeals is basically with respect to the deduction or otherwise from the ‗transaction value‘ defined under section 4(3)(d) of the Central Excise Act, 1944³ under the exclusion of ‗other taxes‘ on the following amount received by the appellant in the sale cum excise invoices.

a. Royalty b. Stowing Excise Duty, c. Forest Transit Fees d. Madhya Pradesh Rural Infrastructure and Road Tax, e. Entry Tax, f. Terminal Tax, g. CG Development and Environment Cess

3. One more issue that arises for consideration is whether excise duty is leviable on captive consumption of coal.

1. the appellant

2. the Finance Act

3. the Central Excise Act

4. The thirty appeals have been divided into three parts. Part-A comprises of appeals where the show cause notices proposed demand of excise duty only on the issue of royalty. Part-B consists of appeals where the show cause notices proposed demand of excise duty on the issue of royalty and all or some of the components from ‗b‘ to ‗g‘ specified above. Part-C consists of the appeal where the show cause notice proposed demand of excise duty only on all or some of the components specified from ‗b‘ to ‗g‘ and not on royalty. Details of the thirty appeals are as follows:

PART A- Duty demand solely on royalty PART- B Duty demand on royalty & other levies PART- C Demand solely on other levies

5. The Commissioner has observed in the adjudication orders that royalty and other levies are not ‗taxes‘ and, therefore, includible in the ‗transaction value‘ under section 4(3)(d) of the Central Excise Act. With respect royalty the Commissioner placed reliance upon the judgment of the Supreme Court rendered by five Hon‘ble Judges of the Supreme Court in State of West Bengal vs. Kesoram Industries⁴ wherein it was held that royalty is not a tax. With respect to the other amount shown from ‗b‘ to ‗g‘ in the aforesaid Chart, the Commissioner held that they do not qualify for deduction from ‗transaction value‘ and shall form part of the assessable value for levy of excise duty on coal in terms of section 4(1) of t