https://www.taxtmi.com/caselaws?id=458078 The CESTAT Delhi ruled in favor of the appellant regarding service tax liability on compensation received for failure to procure contractual power quantity. The Tribunal held that compensation amounts have no nexus with taxable services and cannot be treated as consideration under Section 67 of the Act. Following precedent from the SC decision in Bhayana Builders case, the Tribunal determined that only amounts payable for actual taxable services constitute consideration for service tax purposes. The compensation was distinct from the electricity supply service and aimed to ensure minimum power procurement compliance. The adjudicating authority's order imposing service tax was set aside and the appeal was allowed. en-us Wed, 17 Jan 2024 00:00:00 +0530 Tue, 08 Oct 2024 07:30:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458078 The CESTAT Delhi ruled in favor of the appellant regarding service tax liability on compensation received for failure to procure contractual power quantity. The Tribunal held that compensation amounts have no nexus with taxable services and cannot be treated as consideration under Section 67 of the Act. Following precedent from the SC decision in Bhayana Builders case, the Tribunal determined that only amounts payable for actual taxable services constitute consideration for service tax purposes. The compensation was distinct from the electricity supply service and aimed to ensure minimum power procurement compliance. The adjudicating authority's order imposing service tax was set aside and the appeal was allowed. Case-Laws Service Tax Wed, 17 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458078