https://www.taxtmi.com/caselaws?id=390393 Ex-gratia job charges received by a job worker for under-utilisation of manufacturing capacity were treated as compensation arising from the commercial arrangement, not as consideration for a declared service under the Finance Act, 1994. Because the amount was paid for loss caused by the principal manufacturer's failure to use the agreed capacity, and not for any agreement to tolerate an act, refrain from an act, or do an act, it fell outside the declared-service provisions. The service tax demand, with interest and penalties, was therefore not sustainable. en-us Tue, 26 Nov 2019 00:00:00 +0530 Tue, 03 Nov 2020 11:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=390393 Ex-gratia job charges received by a job worker for under-utilisation of manufacturing capacity were treated as compensation arising from the commercial arrangement, not as consideration for a declared service under the Finance Act, 1994. Because the amount was paid for loss caused by the principal manufacturer's failure to use the agreed capacity, and not for any agreement to tolerate an act, refrain from an act, or do an act, it fell outside the declared-service provisions. The service tax demand, with interest and penalties, was therefore not sustainable. Case-Laws Service Tax Tue, 26 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=390393