Governmental authority status supports construction-service exemption, while pre-cutoff contract and stamp-duty compliance requires verification on re...
Automated Free Sale and Commerce Certificates enable paperless processing while retaining risk-based manual verification for selected exporter applica...
Employee stock-shortage penalties do not constitute consideration for services, preventing GST collection under Schedule II in employment relationship...
CESTAT ruled that liquidated damages/penalty charges collected by M/s. Gujarat Industries Power Company Limited from vendors/suppliers for contract breach do not constitute a declared service under Section 66E(e) of the Finance Act, 1994. The tribunal consistently held that service tax demand on liquidated charges is unsustainable, specifically affirming that penalties for non-completion of contractual timelines are not taxable. The appeal was consequently allowed, exempting such penalty amounts from service tax liability.
CESTAT ruled that liquidated damages/penalty charges collected by M/s. Gujarat Industries Power Company Limited from vendors/suppliers for contract breach do not constitute a declared service under Section 66E(e) of the Finance Act, 1994. The tribunal consistently held that service tax demand on liquidated charges is unsustainable, specifically affirming that penalties for non-completion of contractual timelines are not taxable. The appeal was consequently allowed, exempting such penalty amounts from service tax liability.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4828 
Join Channel 
