https://www.taxtmi.com/caselaws?id=449816 CESTAT Mumbai held that corporate guarantees provided by companies to their subsidiaries without charging any commission or consideration cannot attract service tax liability. The Tribunal found no element of service exists where no consideration is involved, following precedent in Ultratech Cement Ltd. case. Additionally, delayed payment charges by clients for share purchases were ruled not liable to service tax, lacking contractual obligation or consideration flow. The demands were dropped as corporate guarantees cannot fall under banking and financial services definition without consideration. Appeals were allowed in favor of appellants. en-us Mon, 19 Feb 2024 00:00:00 +0530 Tue, 20 Feb 2024 23:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449816 CESTAT Mumbai held that corporate guarantees provided by companies to their subsidiaries without charging any commission or consideration cannot attract service tax liability. The Tribunal found no element of service exists where no consideration is involved, following precedent in Ultratech Cement Ltd. case. Additionally, delayed payment charges by clients for share purchases were ruled not liable to service tax, lacking contractual obligation or consideration flow. The demands were dropped as corporate guarantees cannot fall under banking and financial services definition without consideration. Appeals were allowed in favor of appellants. Case-Laws Service Tax Mon, 19 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449816