https://www.taxtmi.com/caselaws?id=786373 Whether amounts labelled as liquidated damages or penalties for breach of contract constitute 'consideration' for a declared service under section 66E(e) is addressed by recent tribunal authority, which applied the principle that toleration of delay does not supply taxable consideration and therefore contractual penalties are not subject to service tax. The operative effect is that amounts recovered as liquidated damages are not taxable as declared service, the impugned assessment is set aside, and the issue is no longer res integra. en-us Wed, 08 Oct 2025 00:00:00 +0530 Thu, 12 Feb 2026 09:03:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786373 Whether amounts labelled as liquidated damages or penalties for breach of contract constitute 'consideration' for a declared service under section 66E(e) is addressed by recent tribunal authority, which applied the principle that toleration of delay does not supply taxable consideration and therefore contractual penalties are not subject to service tax. The operative effect is that amounts recovered as liquidated damages are not taxable as declared service, the impugned assessment is set aside, and the issue is no longer res integra. Case-Laws Service Tax Wed, 08 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786373