https://www.taxtmi.com/caselaws?id=769184 CESTAT Allahabad dismissed the Department's appeal regarding service tax applicability on late payment charges recovered by UPPCL under Section 66E(e) of Finance Act, 1994. The Tribunal held that penalties and liquidated damages are contractual compliance safeguards, not taxable consideration for tolerating acts or situations. Following precedents from Madhya Pradesh Poorva Kshetra Vidyut Vitran Co. Ltd. and South Eastern Coalfields Ltd., the Tribunal ruled that service tax cannot be levied on late payment surcharges, meter rent, and supervision charges. The impugned order was sustained. en-us Thu, 14 Nov 2024 00:00:00 +0530 Mon, 21 Apr 2025 08:42:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769184 CESTAT Allahabad dismissed the Department's appeal regarding service tax applicability on late payment charges recovered by UPPCL under Section 66E(e) of Finance Act, 1994. The Tribunal held that penalties and liquidated damages are contractual compliance safeguards, not taxable consideration for tolerating acts or situations. Following precedents from Madhya Pradesh Poorva Kshetra Vidyut Vitran Co. Ltd. and South Eastern Coalfields Ltd., the Tribunal ruled that service tax cannot be levied on late payment surcharges, meter rent, and supervision charges. The impugned order was sustained. Case-Laws Service Tax Thu, 14 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769184