https://www.taxtmi.com/caselaws?id=773702 The Tribunal allowed the NBFC's appeal against denial of service tax refund on foreclosure charges. Following the Larger Bench decision in Repco Home Financial Limited, the Tribunal held that foreclosure charges constitute liquidated damages for breach of loan contract, not taxable services under the Finance Act, 1994. The Tribunal ruled that liquidated damages represent compensation for contractual breach rather than consideration for services rendered, distinguishing them from taxable activities. Since no service is provided in exchange for foreclosure charges, service tax is not leviable on such amounts. The refund denial order was set aside, granting the appellant consequential relief. en-us Wed, 25 Jun 2025 00:00:00 +0530 Fri, 27 Jun 2025 08:36:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773702 The Tribunal allowed the NBFC's appeal against denial of service tax refund on foreclosure charges. Following the Larger Bench decision in Repco Home Financial Limited, the Tribunal held that foreclosure charges constitute liquidated damages for breach of loan contract, not taxable services under the Finance Act, 1994. The Tribunal ruled that liquidated damages represent compensation for contractual breach rather than consideration for services rendered, distinguishing them from taxable activities. Since no service is provided in exchange for foreclosure charges, service tax is not leviable on such amounts. The refund denial order was set aside, granting the appellant consequential relief. Case-Laws Service Tax Wed, 25 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773702