https://www.taxtmi.com/caselaws?id=791067 Liquidated damages recovered under contractual delay clauses were treated as consideration for an alleged act of tolerance under section 66E(e) of the Finance Act, 1994. The document notes that such amounts arose only when supply or performance was delayed beyond the agreed timeline and were deducted as a percentage of contract value. Applying coordinate bench decisions, it states that liquidated damages are not receipts for any service and do not amount to taxable declared service. The demand and penalty based on that classification were therefore set aside. en-us Wed, 29 Apr 2026 00:00:00 +0530 Wed, 06 May 2026 08:32:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791067 Liquidated damages recovered under contractual delay clauses were treated as consideration for an alleged act of tolerance under section 66E(e) of the Finance Act, 1994. The document notes that such amounts arose only when supply or performance was delayed beyond the agreed timeline and were deducted as a percentage of contract value. Applying coordinate bench decisions, it states that liquidated damages are not receipts for any service and do not amount to taxable declared service. The demand and penalty based on that classification were therefore set aside. Case-Laws Service Tax Wed, 29 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791067