https://www.taxtmi.com/caselaws?id=461471 CESTAT NEW DELHI held that deduction of amounts from contractor bills as penalties for poor performance or non-compliance with obligations does not constitute a "declared service" under section 66E(e) of Finance Act, 1994. Following precedent in South Eastern Coalfields Limited, the Tribunal ruled that penalty amounts, forfeiture of earnest money, and liquidated damages cannot be considered "consideration" for "tolerating an act" subject to service tax. The Commissioner (Appeals) order was set aside and appeal allowed. en-us Wed, 01 Jan 2025 00:00:00 +0530 Tue, 08 Apr 2025 18:56:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461471 CESTAT NEW DELHI held that deduction of amounts from contractor bills as penalties for poor performance or non-compliance with obligations does not constitute a "declared service" under section 66E(e) of Finance Act, 1994. Following precedent in South Eastern Coalfields Limited, the Tribunal ruled that penalty amounts, forfeiture of earnest money, and liquidated damages cannot be considered "consideration" for "tolerating an act" subject to service tax. The Commissioner (Appeals) order was set aside and appeal allowed. Case-Laws Service Tax Wed, 01 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461471