https://www.taxtmi.com/caselaws?id=770214 CESTAT Ahmedabad held that service tax is not leviable on liquidated damages or penalty charges collected from contractors/suppliers for breach of contract, including delays or deficiencies in supply. The Tribunal determined that such liquidated damages do not constitute a "declared service" under Section 66E(e) of the Finance Act, 1994. Following precedent from Gujarat State Electricity Corporation Limited case, the Tribunal ruled that service tax demand on liquidated charges is not sustainable. The appeal was allowed. en-us Tue, 06 May 2025 00:00:00 +0530 Thu, 08 May 2025 09:13:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770214 CESTAT Ahmedabad held that service tax is not leviable on liquidated damages or penalty charges collected from contractors/suppliers for breach of contract, including delays or deficiencies in supply. The Tribunal determined that such liquidated damages do not constitute a "declared service" under Section 66E(e) of the Finance Act, 1994. Following precedent from Gujarat State Electricity Corporation Limited case, the Tribunal ruled that service tax demand on liquidated charges is not sustainable. The appeal was allowed. Case-Laws Service Tax Tue, 06 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770214