https://www.taxtmi.com/caselaws?id=767713 CESTAT New Delhi dismissed Revenue's appeal regarding service tax demand on hotel operator. The tribunal held that retention charges from cancelled reservations constituted damages/compensation rather than consideration for tolerating an act under Section 66E(e) of Finance Act, thus not liable for service tax. Additionally, amounts recovered from employees for subsidized food represented fulfillment of legal obligations under labour laws rather than taxable service provision. The tribunal ruled no service tax applicable on either component, consequently dismissing demands for interest and penalties. en-us Fri, 14 Feb 2025 00:00:00 +0530 Mon, 24 Mar 2025 08:45:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767713 CESTAT New Delhi dismissed Revenue's appeal regarding service tax demand on hotel operator. The tribunal held that retention charges from cancelled reservations constituted damages/compensation rather than consideration for tolerating an act under Section 66E(e) of Finance Act, thus not liable for service tax. Additionally, amounts recovered from employees for subsidized food represented fulfillment of legal obligations under labour laws rather than taxable service provision. The tribunal ruled no service tax applicable on either component, consequently dismissing demands for interest and penalties. Case-Laws Service Tax Fri, 14 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767713