CESTAT reaffirms Royalty Duty Limits

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, partly allowed the appeal filed by Mahanadi Coalfields Limited against a central excise demand exceeding ₹20.34 crore. 

Following a consistent line of precedents, the Tribunal held that excise duty is payable on the royalty component only for the normal period of limitation, entirely set aside the demand on stowing excise duty and waived interest on the royalty-related duty demand. 

The Tribunal also examined the computation of limitation and held that where a return is filed belatedly, the actual date of filing, not the statutory due date, constitutes the relevant date for determining limitation.