Service tax on Royalty paid  – On exploration of Oil and Natural Gas —-- The petitioner challenged the SCNs both dated 25.02.2020 issued under Section 73, which sought recovery of the Refund which was granted to the petitioner vide Refund sanction Order dated: 24.12.2019. The Counsel for the petitioner submitted that the petitioner is engaged in the business of exploration of Oil and Natural Gas upon licence granted by the Government of India. The petitioner is required to pay royalty for extraction of Crude Oil and Natural Gas from the leased area. Once refund is sanctioned/granted by respondent, there is no provision for recovery of the refunds sanctioned on the same being erroneous under the GST Act. The only remedy available to the Department is to prefer an appeal and/or a revision petition. The actions of the Department demanding service tax from the petitioner on the royalty paid for exploration of Mineral Oil and Natural Gas being contrary to the provisions of Constitutional Scheme. The respondents sought time for filing reply.

Held that:- The Hon’ble High Court granted time and directed that until further orders the impugned SCNs both dated 25.02.2020 dated 25.02.2020 and all consequential actions are to be kept in abeyance.