https://www.taxtmi.com/caselaws?id=789932 Forfeited advance amounts retained as cancellation or room-retention charges on hotel booking cancellations are not consideration for a declared service under section 66E(e) because the booking contract is for accommodation, not an agreement to tolerate cancellation. The amounts function as compensation or liquidated damages for breach of contract, reflecting loss of business rather than payment for any service. As such, they do not satisfy the statutory requirement of consideration for tolerating an act, and the service tax demand is unsustainable. en-us Wed, 15 Apr 2026 00:00:00 +0530 Fri, 17 Apr 2026 08:21:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789932 Forfeited advance amounts retained as cancellation or room-retention charges on hotel booking cancellations are not consideration for a declared service under section 66E(e) because the booking contract is for accommodation, not an agreement to tolerate cancellation. The amounts function as compensation or liquidated damages for breach of contract, reflecting loss of business rather than payment for any service. As such, they do not satisfy the statutory requirement of consideration for tolerating an act, and the service tax demand is unsustainable. Case-Laws Service Tax Wed, 15 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789932