https://www.taxtmi.com/caselaws?id=414646 Statutory compensation received for cancellation of coal block allocations was held not to be consideration for tolerating an act or situation under the Finance Act, 1994. The cancellation occurred by operation of law, and the later compensation scheme was likewise statutory, so the essential elements of a taxable declared service were absent: no contractual choice to tolerate, no actual agreement to tolerate, and no consideration flowing for any service. Compensation for investment loss was treated as distinct from contractual consideration or damages, making the service tax demand, along with interest and penalties, unsustainable. en-us Wed, 10 Nov 2021 00:00:00 +0530 Thu, 08 Sep 2022 12:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=414646 Statutory compensation received for cancellation of coal block allocations was held not to be consideration for tolerating an act or situation under the Finance Act, 1994. The cancellation occurred by operation of law, and the later compensation scheme was likewise statutory, so the essential elements of a taxable declared service were absent: no contractual choice to tolerate, no actual agreement to tolerate, and no consideration flowing for any service. Compensation for investment loss was treated as distinct from contractual consideration or damages, making the service tax demand, along with interest and penalties, unsustainable. Case-Laws Service Tax Wed, 10 Nov 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=414646