https://www.taxtmi.com/caselaws?id=768904 CESTAT Bangalore held that bond amounts recovered from employees leaving before completing agreed employment periods and fees forfeited from students discontinuing courses midway do not constitute declared services under service tax provisions. The tribunal determined these amounts represent penalties imposed to discourage premature departure rather than liquidated damages or taxable services. The forfeiture provisions serve as deterrents against employment disruption and course abandonment. The appeal was allowed, establishing that such penalty collections fall outside the scope of declared services for service tax purposes. en-us Tue, 29 Oct 2024 00:00:00 +0530 Wed, 16 Apr 2025 08:38:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768904 CESTAT Bangalore held that bond amounts recovered from employees leaving before completing agreed employment periods and fees forfeited from students discontinuing courses midway do not constitute declared services under service tax provisions. The tribunal determined these amounts represent penalties imposed to discourage premature departure rather than liquidated damages or taxable services. The forfeiture provisions serve as deterrents against employment disruption and course abandonment. The appeal was allowed, establishing that such penalty collections fall outside the scope of declared services for service tax purposes. Case-Laws Service Tax Tue, 29 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768904