https://www.taxtmi.com/caselaws?id=785821 Water charges paid for permission to draw from a natural source were treated as consideration for supply of water on a quantified, rate-based basis, with the recipient making its own arrangements for drawal and consumption. On that substance, the arrangement was held not to be a mere assignment of a right to use natural resources and not to involve a taxable service within the category relied on by the department. Service tax was therefore not leviable on the water charges, and the penalty under Section 78 of the Finance Act, 1994 could not be sustained. en-us Wed, 21 Jan 2026 00:00:00 +0530 Mon, 02 Feb 2026 08:20:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785821 Water charges paid for permission to draw from a natural source were treated as consideration for supply of water on a quantified, rate-based basis, with the recipient making its own arrangements for drawal and consumption. On that substance, the arrangement was held not to be a mere assignment of a right to use natural resources and not to involve a taxable service within the category relied on by the department. Service tax was therefore not leviable on the water charges, and the penalty under Section 78 of the Finance Act, 1994 could not be sustained. Case-Laws Service Tax Wed, 21 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785821