Clean slate principle extinguishes uncrystallised operational claims and bars continuation of pending recovery and arbitral proceedings after plan app...
Works contract classification governs composite layout-development contracts where VAT-paid goods are transferred alongside construction and infrastru...
Specified income tax exemption for pollution control body remains conditional on non-commercial activity, unchanged income character, and return filin...
Jurisdictional facts in certificate-of-origin discrepancies can support customs show-cause proceedings, leaving factual explanations for departmental ...
Liquidated damages and contractual penalties were treated as...
Contractual compensation and tax liability: Tribunal rejected service tax on damages, dead rent and employee accommodation, confirming only conceded interest.
Contents
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Liquidated damages and contractual penalties were treated as compensation for breach of contract, not consideration for a service or tolerating an act, so the service tax demand was set aside. Dead rent demand was also rejected because the payments arose under earlier agreements and the Tribunal followed its prior ruling on the point. For residential accommodation provided to employees at site, the Tribunal held the department could not take a contrary stand after dropping the same demand for an earlier period without appeal. Where the service provider had already discharged the tax and the appellant reimbursed it, no further reverse charge liability survived. Only the conceded interest for delayed payment was confirmed, and no penalty was imposed.
Liquidated damages and contractual penalties were treated as compensation for breach of contract, not consideration for a service or tolerating an act, so the service tax demand was set aside. Dead rent demand was also rejected because the payments arose under earlier agreements and the Tribunal followed its prior ruling on the point. For residential accommodation provided to employees at site, the Tribunal held the department could not take a contrary stand after dropping the same demand for an earlier period without appeal. Where the service provider had already discharged the tax and the appellant reimbursed it, no further reverse charge liability survived. Only the conceded interest for delayed payment was confirmed, and no penalty was imposed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4809 
Join Channel 
