https://www.taxtmi.com/caselaws?id=761072 CESTAT New Delhi held that liquidated damages and penal interest charged at 2% by the appellant on delayed loan payments are not subject to service tax. The tribunal determined these charges are penal in nature rather than additional consideration for taxable services. Such penalties do not constitute declared services under section 66(E) of the Act as they lack separate agreements or consideration flow. The charges being purely punitive for payment delays cannot be construed as taxable services, making service tax inapplicable. en-us Mon, 04 Nov 2024 00:00:00 +0530 Tue, 05 Nov 2024 07:36:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761072 CESTAT New Delhi held that liquidated damages and penal interest charged at 2% by the appellant on delayed loan payments are not subject to service tax. The tribunal determined these charges are penal in nature rather than additional consideration for taxable services. Such penalties do not constitute declared services under section 66(E) of the Act as they lack separate agreements or consideration flow. The charges being purely punitive for payment delays cannot be construed as taxable services, making service tax inapplicable. Case-Laws Service Tax Mon, 04 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761072