https://www.taxtmi.com/caselaws?id=439015 The appellant received damages from a foreign supplier for breach of contract. The tax department sought to levy service tax on the damages under the Finance Act. The Tribunal ruled in favor of the appellant, stating that damages for breach of contract are compensatory and not subject to service tax. Citing previous decisions and a Ministry of Finance Circular, the Tribunal held that such damages do not constitute consideration for a taxable supply. The Commissioner's demand for service tax was deemed unsustainable, and the appellant's appeal was allowed. en-us Tue, 30 May 2023 00:00:00 +0530 Thu, 15 Jun 2023 08:01:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=439015 The appellant received damages from a foreign supplier for breach of contract. The tax department sought to levy service tax on the damages under the Finance Act. The Tribunal ruled in favor of the appellant, stating that damages for breach of contract are compensatory and not subject to service tax. Citing previous decisions and a Ministry of Finance Circular, the Tribunal held that such damages do not constitute consideration for a taxable supply. The Commissioner's demand for service tax was deemed unsustainable, and the appellant's appeal was allowed. Case-Laws Service Tax Tue, 30 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=439015