https://www.taxtmi.com/caselaws?id=785407 The text addresses taxability under Section 66E(e) of penal interest, liquidated damages/notice pay, and CSR payments treated as sponsorship. It explains that Section 66E(e) requires a conscious, pre-agreed obligation to tolerate an act; penal interest is described as compensatory and not consideration for toleration, and thus not exigible. Notice period recoveries arise from the employer-employee relationship and are compensatory, not taxable. Payments with promotional brand visibility are characterized as sponsorship and taxable where documentary proof of pure donation/CSR is absent. Omission to disclose sponsorships and non-payment under reverse charge is treated as suppression enabling extended limitation, attracting interest and penalties for concealment. en-us Thu, 22 Jan 2026 00:00:00 +0530 Fri, 23 Jan 2026 09:10:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785407 The text addresses taxability under Section 66E(e) of penal interest, liquidated damages/notice pay, and CSR payments treated as sponsorship. It explains that Section 66E(e) requires a conscious, pre-agreed obligation to tolerate an act; penal interest is described as compensatory and not consideration for toleration, and thus not exigible. Notice period recoveries arise from the employer-employee relationship and are compensatory, not taxable. Payments with promotional brand visibility are characterized as sponsorship and taxable where documentary proof of pure donation/CSR is absent. Omission to disclose sponsorships and non-payment under reverse charge is treated as suppression enabling extended limitation, attracting interest and penalties for concealment. Case-Laws Service Tax Thu, 22 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785407