https://www.taxtmi.com/caselaws?id=437204 Contractual liquidated damages or penalty recovered from suppliers and contractors for delay or non-performance are not consideration for a declared service under section 66E(e) of the Finance Act, 1994 unless there is an independent contractual arrangement creating a clear nexus with an agreement to do, refrain from doing, or tolerate an act. Mere recovery of damages for breach or delay does not by itself amount to taxable consideration, and the CBIC circular and earlier Tribunal decisions were treated as consistent with that view. On that basis, such recoveries were not liable to service tax. en-us Wed, 26 Apr 2023 00:00:00 +0530 Sun, 30 Apr 2023 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437204 Contractual liquidated damages or penalty recovered from suppliers and contractors for delay or non-performance are not consideration for a declared service under section 66E(e) of the Finance Act, 1994 unless there is an independent contractual arrangement creating a clear nexus with an agreement to do, refrain from doing, or tolerate an act. Mere recovery of damages for breach or delay does not by itself amount to taxable consideration, and the CBIC circular and earlier Tribunal decisions were treated as consistent with that view. On that basis, such recoveries were not liable to service tax. Case-Laws Service Tax Wed, 26 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437204