Blocked input tax credit for resort construction remains unavailable; interest follows actual utilisation, while delayed payment attracts statutory pe...
Duplicate PAN allocation requires record verification and deactivation reasons before assessment-related transactions can be attributed to an assessee...
Faceless assessment safeguards require requested personal hearings and adequate final show-cause response time, failing which reassessment is required...
CESTAT ruled that Delayed Payment Charges (DPC) received by the appellant stockbroker from clients are not includible in the taxable value for service tax purposes. The Tribunal determined that DPCs constitute penal charges for delayed payments rather than consideration for providing a separate service. Applying principles established in Bhayana Builders and other precedents, CESTAT emphasized that "consideration" under Section 67 of the Finance Act must flow from the service recipient to the service provider as payment for services rendered. The Tribunal noted that Circular 137/25/2011 specifically clarifies that DPCs are not chargeable to service tax as they represent penalties rather than service fees. The impugned order was set aside and the appeal allowed.
CESTAT ruled that Delayed Payment Charges (DPC) received by the appellant stockbroker from clients are not includible in the taxable value for service tax purposes. The Tribunal determined that DPCs constitute penal charges for delayed payments rather than consideration for providing a separate service. Applying principles established in Bhayana Builders and other precedents, CESTAT emphasized that "consideration" under Section 67 of the Finance Act must flow from the service recipient to the service provider as payment for services rendered. The Tribunal noted that Circular 137/25/2011 specifically clarifies that DPCs are not chargeable to service tax as they represent penalties rather than service fees. The impugned order was set aside and the appeal allowed.
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