https://www.taxtmi.com/caselaws?id=768655 The CESTAT New Delhi ruled that income received as forfeiture of security deposits, earnest money deposits, and fines/penalties recovered from contractors is not subject to service tax. The Tribunal held that such amounts recovered for breach or non-compliance of contractual terms cannot be construed as 'consideration' for 'refraining or tolerating an act' under the declared services provisions. Following precedent from South Eastern Coal Fields Ltd. case, the CESTAT determined that penalties, fines, and forfeited amounts are not consideration for declared services under section 66E(e) of the Finance Act. The appeal was allowed. en-us Tue, 08 Apr 2025 00:00:00 +0530 Fri, 11 Apr 2025 08:40:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768655 The CESTAT New Delhi ruled that income received as forfeiture of security deposits, earnest money deposits, and fines/penalties recovered from contractors is not subject to service tax. The Tribunal held that such amounts recovered for breach or non-compliance of contractual terms cannot be construed as 'consideration' for 'refraining or tolerating an act' under the declared services provisions. Following precedent from South Eastern Coal Fields Ltd. case, the CESTAT determined that penalties, fines, and forfeited amounts are not consideration for declared services under section 66E(e) of the Finance Act. The appeal was allowed. Case-Laws Service Tax Tue, 08 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768655