https://www.taxtmi.com/caselaws?id=794205 Advance paid for procurement of capital goods, followed by cancellation of the contract and refund by the foreign supplier, did not give rise to any surviving taxable service. On those facts, service tax was not payable under reverse charge mechanism because the payment was towards goods and not towards a service transaction. As the tax demand itself failed, the penalty also could not survive. The impugned order was set aside and the appeal was allowed with consequential relief. en-us Thu, 18 Jun 2026 00:00:00 +0530 Thu, 02 Jul 2026 08:07:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794205 Advance paid for procurement of capital goods, followed by cancellation of the contract and refund by the foreign supplier, did not give rise to any surviving taxable service. On those facts, service tax was not payable under reverse charge mechanism because the payment was towards goods and not towards a service transaction. As the tax demand itself failed, the penalty also could not survive. The impugned order was set aside and the appeal was allowed with consequential relief. Case-Laws Service Tax Thu, 18 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794205