https://www.taxtmi.com/caselaws?id=435255 The Tribunal set aside the demand for service tax on liquidated damages, remanding the matter for fresh consideration by the adjudicating authority in light of CBIC Circular No. 178/10/2022-GST, which clarified that such payments are not taxable under Section 66E(e) of the Finance Act, 1994. The Circular emphasized that liquidated damages are compensatory and not consideration for tolerating an act, thus not constituting a taxable supply. en-us Tue, 14 Mar 2023 00:00:00 +0530 Thu, 16 Mar 2023 08:38:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435255 The Tribunal set aside the demand for service tax on liquidated damages, remanding the matter for fresh consideration by the adjudicating authority in light of CBIC Circular No. 178/10/2022-GST, which clarified that such payments are not taxable under Section 66E(e) of the Finance Act, 1994. The Circular emphasized that liquidated damages are compensatory and not consideration for tolerating an act, thus not constituting a taxable supply. Case-Laws Service Tax Tue, 14 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435255