https://www.taxtmi.com/caselaws?id=791889 Amounts recovered as liquidated damages for a supplier's delay were held not to constitute consideration for an act of tolerance under section 66E(e) of the Finance Act, 1994. The demand was based on the premise that the recovery was a declared service, but the Tribunal applied coordinate Bench decisions and found that such damages arise only from contractual non-performance, not from any taxable service. On that basis, the impugned service tax demand was not legally sustainable and the recovery was not exigible to service tax. en-us Wed, 13 May 2026 00:00:00 +0530 Wed, 20 May 2026 08:31:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791889 Amounts recovered as liquidated damages for a supplier's delay were held not to constitute consideration for an act of tolerance under section 66E(e) of the Finance Act, 1994. The demand was based on the premise that the recovery was a declared service, but the Tribunal applied coordinate Bench decisions and found that such damages arise only from contractual non-performance, not from any taxable service. On that basis, the impugned service tax demand was not legally sustainable and the recovery was not exigible to service tax. Case-Laws Service Tax Wed, 13 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791889