https://www.taxtmi.com/caselaws?id=761418 CESTAT Ahmedabad held that penal interest charged by a manufacturer to customers for delayed payment of goods sold on principal-to-principal basis is not liable to service tax under Section 66E(e) of Finance Act, 1994. Following SC precedent in South Eastern Coalfields Ltd., the tribunal ruled that such interest cannot be classified as "agreeing to obligation to tolerate an act" under declared service provisions. The impugned order was set aside and appeal allowed with consequential relief. en-us Thu, 07 Nov 2024 00:00:00 +0530 Mon, 11 Nov 2024 08:42:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761418 CESTAT Ahmedabad held that penal interest charged by a manufacturer to customers for delayed payment of goods sold on principal-to-principal basis is not liable to service tax under Section 66E(e) of Finance Act, 1994. Following SC precedent in South Eastern Coalfields Ltd., the tribunal ruled that such interest cannot be classified as "agreeing to obligation to tolerate an act" under declared service provisions. The impugned order was set aside and appeal allowed with consequential relief. Case-Laws Service Tax Thu, 07 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761418