https://www.taxtmi.com/caselaws?id=793418 Penalties and liquidated damages recovered for delayed delivery were held not to be consideration for a declared service under Section 66E(e) of the Finance Act, 1994. The text states that liability arises only where there is a bilateral arrangement with consideration for refraining from an act, tolerating an act or situation, or doing an act. Contractual damages collected on breach are compensatory, not a consensual service transaction, and binding precedent treated such recoveries as outside service tax. Accordingly, these recoveries are not liable to service tax. en-us Tue, 02 Jun 2026 00:00:00 +0530 Tue, 16 Jun 2026 08:32:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793418 Penalties and liquidated damages recovered for delayed delivery were held not to be consideration for a declared service under Section 66E(e) of the Finance Act, 1994. The text states that liability arises only where there is a bilateral arrangement with consideration for refraining from an act, tolerating an act or situation, or doing an act. Contractual damages collected on breach are compensatory, not a consensual service transaction, and binding precedent treated such recoveries as outside service tax. Accordingly, these recoveries are not liable to service tax. Case-Laws Service Tax Tue, 02 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793418