https://www.taxtmi.com/caselaws?id=768193 CESTAT Chennai held that liquidated damages and late payment charges collected by a public sector undertaking do not constitute declared services under Section 66E(e) of Finance Act, 1994. The tribunal found no intent to evade service tax payment, noting absence of collusion or willful misstatement. Extended limitation period was improperly invoked as facts were already known to authorities. Recovery of liquidated damages cannot be considered service provision since neither party intends contract breach. Service tax demands, interest, and penalties were set aside. Appeal allowed. en-us Fri, 28 Mar 2025 00:00:00 +0530 Thu, 03 Apr 2025 07:50:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768193 CESTAT Chennai held that liquidated damages and late payment charges collected by a public sector undertaking do not constitute declared services under Section 66E(e) of Finance Act, 1994. The tribunal found no intent to evade service tax payment, noting absence of collusion or willful misstatement. Extended limitation period was improperly invoked as facts were already known to authorities. Recovery of liquidated damages cannot be considered service provision since neither party intends contract breach. Service tax demands, interest, and penalties were set aside. Appeal allowed. Case-Laws Service Tax Fri, 28 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768193