https://www.taxtmi.com/caselaws?id=469502 Liquidated damages and penal charges recovered from vendors for delayed delivery were held not to constitute consideration for any taxable service. The Tribunal treated such recoveries as compensatory amounts for breach of contract, not payment for activity carried out for another or for tolerating breach merely because the contract contained a penal clause. Relying on the settled position and the Board circular, it held that service tax was not leviable on the amounts recovered, and the connected demand of interest, late fee and penalties also could not survive. The revenue appeal was dismissed and the relief granted to the assessee was upheld. en-us Wed, 07 Aug 2024 00:00:00 +0530 Fri, 19 Jun 2026 19:55:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469502 Liquidated damages and penal charges recovered from vendors for delayed delivery were held not to constitute consideration for any taxable service. The Tribunal treated such recoveries as compensatory amounts for breach of contract, not payment for activity carried out for another or for tolerating breach merely because the contract contained a penal clause. Relying on the settled position and the Board circular, it held that service tax was not leviable on the amounts recovered, and the connected demand of interest, late fee and penalties also could not survive. The revenue appeal was dismissed and the relief granted to the assessee was upheld. Case-Laws Service Tax Wed, 07 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469502