https://www.taxtmi.com/caselaws?id=450715 CESTAT Kolkata allowed the appeal regarding service tax on gas transportation services. The tribunal held that Minimum Demand Charges (MDC) received as penalty when customers failed to consume 90% of booked gas quantity cannot be considered as consideration for services rendered, thus not liable for service tax. Additionally, marketing margins collected for gas supply were deemed part of gas sale value on which VAT was already paid, following precedent in GAIL India Ltd case. The tribunal set aside service tax demands on both MDC and marketing margins, ruling the appellant not liable for service tax on these amounts. en-us Thu, 08 Feb 2024 00:00:00 +0530 Tue, 12 Mar 2024 08:54:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450715 CESTAT Kolkata allowed the appeal regarding service tax on gas transportation services. The tribunal held that Minimum Demand Charges (MDC) received as penalty when customers failed to consume 90% of booked gas quantity cannot be considered as consideration for services rendered, thus not liable for service tax. Additionally, marketing margins collected for gas supply were deemed part of gas sale value on which VAT was already paid, following precedent in GAIL India Ltd case. The tribunal set aside service tax demands on both MDC and marketing margins, ruling the appellant not liable for service tax on these amounts. Case-Laws Service Tax Thu, 08 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450715