https://www.taxtmi.com/caselaws?id=794207 Late payment surcharge on delayed electricity charges was held not taxable as a declared service under section 66E(e) of the Finance Act, 1994, because it was intrinsically linked to the exempt supply of electricity. The surcharge formed part of the electricity tariff structure, had no independent existence apart from the principal supply, and could not be artificially separated from the generation and supply of electricity. As a facility or ancillary levy naturally bundled with the principal exempt supply, it had to be assessed in the same manner as that supply and not as a separate taxable service. The demand was therefore not sustainable. en-us Tue, 30 Jun 2026 00:00:00 +0530 Thu, 02 Jul 2026 08:07:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794207 Late payment surcharge on delayed electricity charges was held not taxable as a declared service under section 66E(e) of the Finance Act, 1994, because it was intrinsically linked to the exempt supply of electricity. The surcharge formed part of the electricity tariff structure, had no independent existence apart from the principal supply, and could not be artificially separated from the generation and supply of electricity. As a facility or ancillary levy naturally bundled with the principal exempt supply, it had to be assessed in the same manner as that supply and not as a separate taxable service. The demand was therefore not sustainable. Case-Laws Service Tax Tue, 30 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794207