https://www.taxtmi.com/caselaws?id=767583 Amounts recovered as liquidated damages, forfeiture of security/earnest money and contractual penalties do not constitute consideration for a declared service of toleration and therefore are not taxable as service under the Finance Act. The analysis applies the statutory definitions of service and declared services together with valuation principles and follows higher court precedents rejecting characterization of penalties or forfeitures as payment for tolerating an act; accordingly such receipts are not services and the impugned tax demand was set aside and the appeal allowed. en-us Tue, 18 Mar 2025 00:00:00 +0530 Wed, 04 Feb 2026 13:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767583 Amounts recovered as liquidated damages, forfeiture of security/earnest money and contractual penalties do not constitute consideration for a declared service of toleration and therefore are not taxable as service under the Finance Act. The analysis applies the statutory definitions of service and declared services together with valuation principles and follows higher court precedents rejecting characterization of penalties or forfeitures as payment for tolerating an act; accordingly such receipts are not services and the impugned tax demand was set aside and the appeal allowed. Case-Laws Service Tax Tue, 18 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767583