https://www.taxtmi.com/caselaws?id=794761 A compulsory payment into the CAMPA fund made under statutory forest-clearance requirements for diversion of forest land does not constitute a declared service under section 66E(e) of the Finance Act, 1994. The payment was collected by operation of law to compensate for ecological loss and meet conservation obligations, not under any consensual arrangement to tolerate an act or situation, so the essential element of consideration for service tax was absent. Service tax could not therefore be levied on such compensatory statutory payments, and the demand, interest and penalty were unsustainable. en-us Wed, 06 May 2026 00:00:00 +0530 Sat, 11 Jul 2026 08:46:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794761 A compulsory payment into the CAMPA fund made under statutory forest-clearance requirements for diversion of forest land does not constitute a declared service under section 66E(e) of the Finance Act, 1994. The payment was collected by operation of law to compensate for ecological loss and meet conservation obligations, not under any consensual arrangement to tolerate an act or situation, so the essential element of consideration for service tax was absent. Service tax could not therefore be levied on such compensatory statutory payments, and the demand, interest and penalty were unsustainable. Case-Laws Service Tax Wed, 06 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794761