https://www.taxtmi.com/caselaws?id=307570 The appeal was allowed in favor of the Appellant, a PSU under the Ministry of Defence, regarding the demand of service tax on penalties/liquidated damages recovered from suppliers for contract breaches. The Tribunal ruled that such penalties are not subject to service tax under section 66E (e) of the Finance Act, as they do not involve refraining from an act or tolerating a situation, based on contract terms and legal precedents. The impugned order demanding service tax was set aside, granting the Appellant consequential benefits as per the law. en-us Wed, 14 Sep 2022 00:00:00 +0530 Fri, 21 Apr 2023 21:57:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=307570 The appeal was allowed in favor of the Appellant, a PSU under the Ministry of Defence, regarding the demand of service tax on penalties/liquidated damages recovered from suppliers for contract breaches. The Tribunal ruled that such penalties are not subject to service tax under section 66E (e) of the Finance Act, as they do not involve refraining from an act or tolerating a situation, based on contract terms and legal precedents. The impugned order demanding service tax was set aside, granting the Appellant consequential benefits as per the law. Case-Laws Service Tax Wed, 14 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=307570