https://www.taxtmi.com/caselaws?id=469056 Liquidated damages recovered from vendors for breach of contract were treated as penalty for non-compliance, not as consideration for any activity undertaken for another person, so they were not taxable as a declared service by way of tolerating breach. The demand also failed on limitation because the assessee had filed ST-3 returns, records were available to departmental audit, and the material did not show wilful suppression or an intent to evade tax. The extended period was therefore unavailable, and the demand was held unsustainable. en-us Wed, 14 May 2025 00:00:00 +0530 Sat, 30 May 2026 13:45:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469056 Liquidated damages recovered from vendors for breach of contract were treated as penalty for non-compliance, not as consideration for any activity undertaken for another person, so they were not taxable as a declared service by way of tolerating breach. The demand also failed on limitation because the assessee had filed ST-3 returns, records were available to departmental audit, and the material did not show wilful suppression or an intent to evade tax. The extended period was therefore unavailable, and the demand was held unsustainable. Case-Laws Service Tax Wed, 14 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469056