https://www.taxtmi.com/caselaws?id=773619 The Tribunal allowed the appeal and set aside the service tax demand on delayed payment charges (DPC) collected by a stock broker company from clients. The Tribunal held that DPC constitutes penal interest for delayed payments rather than consideration for a declared service under Section 66E(e) of the Finance Act, 1994. Following precedents including South Eastern Coalfields Ltd., the Tribunal ruled that penal charges designed to safeguard commercial interests and discourage defaults do not amount to "tolerating an act" under the declared services provision. The charges were found to be compensatory in nature, not fees for providing a separate service of toleration, making them exempt from service tax liability. en-us Tue, 24 Jun 2025 00:00:00 +0530 Tue, 24 Jun 2025 16:44:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773619 The Tribunal allowed the appeal and set aside the service tax demand on delayed payment charges (DPC) collected by a stock broker company from clients. The Tribunal held that DPC constitutes penal interest for delayed payments rather than consideration for a declared service under Section 66E(e) of the Finance Act, 1994. Following precedents including South Eastern Coalfields Ltd., the Tribunal ruled that penal charges designed to safeguard commercial interests and discourage defaults do not amount to "tolerating an act" under the declared services provision. The charges were found to be compensatory in nature, not fees for providing a separate service of toleration, making them exempt from service tax liability. Case-Laws Service Tax Tue, 24 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773619