https://www.taxtmi.com/caselaws?id=404329 Liquidated damages recovered for contractual default and theft charges recovered for unauthorised use of electricity were not consideration for a declared service under section 66E(e) of the Finance Act, 1994. Liability under that provision requires a service involving agreement to refrain from an act, tolerate an act or situation, or do an act, together with consideration for that specific activity. The penalty clauses were only performance safeguards triggered on breach and not consensual toleration, while theft charges were compensatory and punitive rather than payment for any service. Accordingly, the amounts were not taxable as declared services. en-us Thu, 14 Jan 2021 00:00:00 +0530 Tue, 01 Jun 2021 11:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404329 Liquidated damages recovered for contractual default and theft charges recovered for unauthorised use of electricity were not consideration for a declared service under section 66E(e) of the Finance Act, 1994. Liability under that provision requires a service involving agreement to refrain from an act, tolerate an act or situation, or do an act, together with consideration for that specific activity. The penalty clauses were only performance safeguards triggered on breach and not consensual toleration, while theft charges were compensatory and punitive rather than payment for any service. Accordingly, the amounts were not taxable as declared services. Case-Laws Service Tax Thu, 14 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404329