Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
CESTAT held that penal charges recovered for delayed service performance do not constitute a taxable service. The tribunal determined that contractual penalty clauses representing conditions of contract, rather than specific considerations, are not subject to service tax. The disputed amounts represent contractual penalties aimed at deterring service delays, not a distinct taxable service. Relying on judicial precedents and departmental circulars, the tribunal distinguished between contract conditions and considerations. Consequently, the retention amount does not transform into a taxable service. The appeal was allowed, with no service tax levied under Section 66E(e) of the Finance Act, and consequential interest and penalties were also set aside.
CESTAT held that penal charges recovered for delayed service performance do not constitute a taxable service. The tribunal determined that contractual penalty clauses representing conditions of contract, rather than specific considerations, are not subject to service tax. The disputed amounts represent contractual penalties aimed at deterring service delays, not a distinct taxable service. Relying on judicial precedents and departmental circulars, the tribunal distinguished between contract conditions and considerations. Consequently, the retention amount does not transform into a taxable service. The appeal was allowed, with no service tax levied under Section 66E(e) of the Finance Act, and consequential interest and penalties were also set aside.
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TaxTMI 
TaxTMI 
of 4918 
