https://www.taxtmi.com/caselaws?id=752742 CESTAT ruled that interest received by appellant on delayed payments for flats/villas/shops constitutes compensation for loss, not consideration for taxable service. The tribunal held that penal interest clauses safeguard commercial interests and deter delayed payments rather than representing additional taxable activity. Since appellant provided only construction services, no Cenvat Credit reversal was required under Rule 6(1)(3) of Cenvat Credit Rules, 2004. The show cause notice was deemed frivolous and void, with the impugned order set aside and appeal allowed. en-us Thu, 16 May 2024 00:00:00 +0530 Fri, 17 May 2024 08:32:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752742 CESTAT ruled that interest received by appellant on delayed payments for flats/villas/shops constitutes compensation for loss, not consideration for taxable service. The tribunal held that penal interest clauses safeguard commercial interests and deter delayed payments rather than representing additional taxable activity. Since appellant provided only construction services, no Cenvat Credit reversal was required under Rule 6(1)(3) of Cenvat Credit Rules, 2004. The show cause notice was deemed frivolous and void, with the impugned order set aside and appeal allowed. Case-Laws Service Tax Thu, 16 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752742