https://www.taxtmi.com/caselaws?id=761489 The CESTAT NEW DELHI held that compensation received by appellant for cancellation of land purchase agreements did not constitute consideration for declared service under Section 66E(e) of Finance Act 1994. The tribunal ruled that cancellation amounts were contractual compensation under Sections 73-75 of Indian Contract Act, not payment for obligation to refrain from act or tolerate situation. Following precedent in South Eastern Coalfields Ltd. case and recent departmental circular, the tribunal found no taxable service was rendered. Extended limitation period was wrongly invoked without evidence of suppression. Show cause notice was time-barred and the demand was set aside. en-us Fri, 08 Nov 2024 00:00:00 +0530 Mon, 11 Nov 2024 19:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761489 The CESTAT NEW DELHI held that compensation received by appellant for cancellation of land purchase agreements did not constitute consideration for declared service under Section 66E(e) of Finance Act 1994. The tribunal ruled that cancellation amounts were contractual compensation under Sections 73-75 of Indian Contract Act, not payment for obligation to refrain from act or tolerate situation. Following precedent in South Eastern Coalfields Ltd. case and recent departmental circular, the tribunal found no taxable service was rendered. Extended limitation period was wrongly invoked without evidence of suppression. Show cause notice was time-barred and the demand was set aside. Case-Laws Service Tax Fri, 08 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761489