https://www.taxtmi.com/caselaws?id=782555 The Tribunal held that compensation received by the appellant for Lost-in-Hole (LIH) drilling equipment/tools, damaged or lost during provision of drilling services, is not includible in the taxable value for service tax purposes. Relying on a prior coordinate Bench ruling on an identical issue, the CESTAT concluded that such LIH compensation constitutes recovery of cost for loss of assets and not consideration for a taxable service. Consequently, the impugned order of the Commissioner (Appeals) demanding service tax on LIH compensation was set aside and the appeal was allowed. en-us Fri, 21 Nov 2025 00:00:00 +0530 Tue, 02 Dec 2025 19:08:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782555 The Tribunal held that compensation received by the appellant for Lost-in-Hole (LIH) drilling equipment/tools, damaged or lost during provision of drilling services, is not includible in the taxable value for service tax purposes. Relying on a prior coordinate Bench ruling on an identical issue, the CESTAT concluded that such LIH compensation constitutes recovery of cost for loss of assets and not consideration for a taxable service. Consequently, the impugned order of the Commissioner (Appeals) demanding service tax on LIH compensation was set aside and the appeal was allowed. Case-Laws Service Tax Fri, 21 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782555