https://www.taxtmi.com/caselaws?id=753061 Amounts recovered under contractual clauses for delayed supply, non-conforming supply, or delay in execution of work are not taxable as declared services unless the agreement specifically creates an arrangement to tolerate, refrain from, or do an act for consideration. A contract for supply of coal or execution of work, with compensation clauses for breach or delay, merely safeguards performance and does not amount to an independent service under section 65B(44) or section 66E(e) of the Finance Act, 1994. The recovered sums were therefore not consideration for any service, and service tax was not leviable. en-us Wed, 15 May 2024 00:00:00 +0530 Thu, 23 May 2024 16:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753061 Amounts recovered under contractual clauses for delayed supply, non-conforming supply, or delay in execution of work are not taxable as declared services unless the agreement specifically creates an arrangement to tolerate, refrain from, or do an act for consideration. A contract for supply of coal or execution of work, with compensation clauses for breach or delay, merely safeguards performance and does not amount to an independent service under section 65B(44) or section 66E(e) of the Finance Act, 1994. The recovered sums were therefore not consideration for any service, and service tax was not leviable. Case-Laws Service Tax Wed, 15 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753061