https://www.taxtmi.com/caselaws?id=787996 Whether despatch money under a charter party qualifies as consideration for a taxable port service was addressed by treating the payment as an incentive/penal contractual adjustment contingent on early performance and subject to netting with demurrage. The legal reasoning rejected characterising despatch money as payment for a distinct service because there was no separate contract or obligation to render a port service beyond the charter terms; prior authorities treating such sums as liquidated damages/incentives were followed. Outcome: despatch money is not consideration for a taxable port service and is not liable to service tax. en-us Fri, 13 Mar 2026 00:00:00 +0530 Mon, 16 Mar 2026 08:42:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787996 Whether despatch money under a charter party qualifies as consideration for a taxable port service was addressed by treating the payment as an incentive/penal contractual adjustment contingent on early performance and subject to netting with demurrage. The legal reasoning rejected characterising despatch money as payment for a distinct service because there was no separate contract or obligation to render a port service beyond the charter terms; prior authorities treating such sums as liquidated damages/incentives were followed. Outcome: despatch money is not consideration for a taxable port service and is not liable to service tax. Case-Laws Service Tax Fri, 13 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787996