https://www.taxtmi.com/caselaws?id=767295 Liquidated damages collected for breach or delay do not amount to a declared service under Section 66E(e) of the Finance Act, 1994, and are therefore not liable to service tax. The Tribunal treated the issue as settled by prior decisions and supported by Board circulars, and held that penalty, late delivery charges and similar recoveries cannot be taxed as consideration for a service. On that basis, the service tax demand was held unsustainable, the appellate order was set aside, and the assessee obtained relief by deletion of the demand on liquidated damages. en-us Fri, 21 Feb 2025 00:00:00 +0530 Sat, 15 Mar 2025 08:41:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767295 Liquidated damages collected for breach or delay do not amount to a declared service under Section 66E(e) of the Finance Act, 1994, and are therefore not liable to service tax. The Tribunal treated the issue as settled by prior decisions and supported by Board circulars, and held that penalty, late delivery charges and similar recoveries cannot be taxed as consideration for a service. On that basis, the service tax demand was held unsustainable, the appellate order was set aside, and the assessee obtained relief by deletion of the demand on liquidated damages. Case-Laws Service Tax Fri, 21 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767295