https://www.taxtmi.com/caselaws?id=434091 Service tax was not leviable on amounts routed through a nodal agency to vendors for execution of State IT projects, because the agency acted only as a pure agent: it separately taxed its supervisory service charges, while the vendor payments were reimbursements borne by the State Government and not consideration for any service rendered by the agency. Service tax was also not leviable on liquidated damages recovered for contractual breach, as such recoveries arise from default under the contract and do not constitute consideration for tolerating an act or for any independent taxable service. The demand failed on both components and the appeal succeeded. en-us Tue, 14 Feb 2023 00:00:00 +0530 Mon, 16 Oct 2023 11:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=434091 Service tax was not leviable on amounts routed through a nodal agency to vendors for execution of State IT projects, because the agency acted only as a pure agent: it separately taxed its supervisory service charges, while the vendor payments were reimbursements borne by the State Government and not consideration for any service rendered by the agency. Service tax was also not leviable on liquidated damages recovered for contractual breach, as such recoveries arise from default under the contract and do not constitute consideration for tolerating an act or for any independent taxable service. The demand failed on both components and the appeal succeeded. Case-Laws Service Tax Tue, 14 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=434091