https://www.taxtmi.com/caselaws?id=447220 Amounts recovered as earnest money forfeiture, liquidated damages, and contractual penalties for breach or non-performance were held not to constitute consideration for agreeing to refrain from an act, tolerate an act or situation, or do an act under section 66E(e) of the Finance Act, 1994. The recoveries were treated as consequences of contractual default, not as payment for an independent service, because the contracts did not specifically create an arrangement to tolerate default in return for consideration. Mere breach of contract with consequential damages was therefore distinguished from a taxable service, and the service tax demand on the contractual recoveries was held unsustainable. en-us Mon, 11 Dec 2023 00:00:00 +0530 Thu, 21 Dec 2023 09:27:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447220 Amounts recovered as earnest money forfeiture, liquidated damages, and contractual penalties for breach or non-performance were held not to constitute consideration for agreeing to refrain from an act, tolerate an act or situation, or do an act under section 66E(e) of the Finance Act, 1994. The recoveries were treated as consequences of contractual default, not as payment for an independent service, because the contracts did not specifically create an arrangement to tolerate default in return for consideration. Mere breach of contract with consequential damages was therefore distinguished from a taxable service, and the service tax demand on the contractual recoveries was held unsustainable. Case-Laws Service Tax Mon, 11 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447220