https://www.taxtmi.com/caselaws?id=768331 CESTAT New Delhi ruled that compensation received for "Lost-in-Hole" items during drilling services cannot be included in taxable service value for service tax calculation. Following Balaji Enterprises precedent, such compensation for accidental damages due to unforeseen actions unrelated to service provision must be excluded from assessable value. The tribunal also held that extended limitation period under Section 73 could not be invoked absent willful suppression or intent to evade tax, noting prior audit by CERA without evidence of deliberate concealment. The demand for extended period was set aside and appeal allowed. en-us Tue, 01 Apr 2025 00:00:00 +0530 Thu, 03 Apr 2025 12:24:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768331 CESTAT New Delhi ruled that compensation received for "Lost-in-Hole" items during drilling services cannot be included in taxable service value for service tax calculation. Following Balaji Enterprises precedent, such compensation for accidental damages due to unforeseen actions unrelated to service provision must be excluded from assessable value. The tribunal also held that extended limitation period under Section 73 could not be invoked absent willful suppression or intent to evade tax, noting prior audit by CERA without evidence of deliberate concealment. The demand for extended period was set aside and appeal allowed. Case-Laws Service Tax Tue, 01 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768331