https://www.taxtmi.com/caselaws?id=758375 CESTAT Ahmedabad held that ex-gratia job charges received by appellant from contract manufacturer were not liable to service tax. Following precedent in K.N. Food Industries case, the tribunal ruled that ex-gratia payments made to compensate for damages, losses or injuries from unintended events do not constitute payment for services. The charges were compensatory in nature for contractual breaches rather than consideration for tolerable services. The impugned order was set aside and appeal allowed based on identical facts and common legal issues with the precedent case. en-us Wed, 11 Sep 2024 00:00:00 +0530 Thu, 12 Sep 2024 15:29:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758375 CESTAT Ahmedabad held that ex-gratia job charges received by appellant from contract manufacturer were not liable to service tax. Following precedent in K.N. Food Industries case, the tribunal ruled that ex-gratia payments made to compensate for damages, losses or injuries from unintended events do not constitute payment for services. The charges were compensatory in nature for contractual breaches rather than consideration for tolerable services. The impugned order was set aside and appeal allowed based on identical facts and common legal issues with the precedent case. Case-Laws Service Tax Wed, 11 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758375