https://www.taxtmi.com/caselaws?id=785735 Forfeiture of security deposits, earnest money, fines, penalties and liquidated damages do not constitute consideration for a service where there is no flow of consideration for refraining from, tolerating, or doing an act; accordingly such amounts are not taxable as a 'declared service' under the definition of service and consideration. The departmental circular interpreting Section 66E(e) and the definition of consideration supports treating penal charges as non-taxable, leading to setting aside of the assessment that sought to levy service tax on such recoveries. en-us Mon, 05 Jan 2026 00:00:00 +0530 Fri, 30 Jan 2026 09:22:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785735 Forfeiture of security deposits, earnest money, fines, penalties and liquidated damages do not constitute consideration for a service where there is no flow of consideration for refraining from, tolerating, or doing an act; accordingly such amounts are not taxable as a 'declared service' under the definition of service and consideration. The departmental circular interpreting Section 66E(e) and the definition of consideration supports treating penal charges as non-taxable, leading to setting aside of the assessment that sought to levy service tax on such recoveries. Case-Laws Service Tax Mon, 05 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785735