https://www.taxtmi.com/caselaws?id=791379 Amounts received as penalty or liquidated damages for delay or contractual non-compliance do not constitute consideration for tolerating an act under the declared service provision. The reasoning follows earlier co-ordinate Bench decisions, including the appellant's own case, which held that such receipts are not paid for any service of tolerating breach or delay. Accordingly, they fall outside section 66E(e) of the Finance Act, 1994, and the service tax demand is unsustainable. en-us Tue, 05 May 2026 00:00:00 +0530 Mon, 11 May 2026 09:50:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791379 Amounts received as penalty or liquidated damages for delay or contractual non-compliance do not constitute consideration for tolerating an act under the declared service provision. The reasoning follows earlier co-ordinate Bench decisions, including the appellant's own case, which held that such receipts are not paid for any service of tolerating breach or delay. Accordingly, they fall outside section 66E(e) of the Finance Act, 1994, and the service tax demand is unsustainable. Case-Laws Service Tax Tue, 05 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791379