https://www.taxtmi.com/caselaws?id=769793 CESTAT Delhi set aside service tax demand on forfeited security deposits/earnest money deposits. The tribunal held that forfeited amounts cannot be considered as consideration for declared services under section 66E(e) of Finance Act, 1994. Contract cancellation itself does not constitute a service. The decision relied on SC precedent in South Eastern Coal case and departmental Circular No.214/1/2023-ST clarifying service tax leviability. Lower authorities were criticized for judicial indiscipline in ignoring established precedents. Appeal was allowed and demand was quashed. en-us Tue, 08 Apr 2025 00:00:00 +0530 Fri, 02 May 2025 08:54:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769793 CESTAT Delhi set aside service tax demand on forfeited security deposits/earnest money deposits. The tribunal held that forfeited amounts cannot be considered as consideration for declared services under section 66E(e) of Finance Act, 1994. Contract cancellation itself does not constitute a service. The decision relied on SC precedent in South Eastern Coal case and departmental Circular No.214/1/2023-ST clarifying service tax leviability. Lower authorities were criticized for judicial indiscipline in ignoring established precedents. Appeal was allowed and demand was quashed. Case-Laws Service Tax Tue, 08 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769793