https://www.taxtmi.com/caselaws?id=437204 The Tribunal ruled in favor of the appellant, holding that the liquidated damages and penalties recovered from suppliers and contractors for delays in work completion were not taxable under the service tax laws. The Tribunal emphasized that these amounts did not constitute "consideration" for taxable services, as they were not part of the taxable value for service tax payment. Citing previous judgments and a circular by the CBIC, the Tribunal found that there was no sufficient nexus between the supply and consideration, leading to the conclusion that the collection of liquidated damages/penalties was not routine and did not reflect a regular obligation between parties. 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 The Tribunal ruled in favor of the appellant, holding that the liquidated damages and penalties recovered from suppliers and contractors for delays in work completion were not taxable under the service tax laws. The Tribunal emphasized that these amounts did not constitute "consideration" for taxable services, as they were not part of the taxable value for service tax payment. Citing previous judgments and a circular by the CBIC, the Tribunal found that there was no sufficient nexus between the supply and consideration, leading to the conclusion that the collection of liquidated damages/penalties was not routine and did not reflect a regular obligation between parties. Case-Laws Service Tax Wed, 26 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437204