https://www.taxtmi.com/caselaws?id=470156 Service tax requires consideration for an identifiable service. Minimum demand charges payable when customers failed to lift contracted gas quantities were penal in nature and did not compensate for pipeline transportation; they were therefore not taxable. Marketing margin formed part of the gas sale value, had suffered VAT, and did not represent consideration for an independent service to buyers because pre-sale activities were undertaken on the seller's own account and ownership passed at the agreed delivery point. Accordingly, service-tax demands on both minimum demand charges and marketing margin were unsustainable. en-us Fri, 13 Sep 2024 00:00:00 +0530 Fri, 17 Jul 2026 21:38:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470156 Service tax requires consideration for an identifiable service. Minimum demand charges payable when customers failed to lift contracted gas quantities were penal in nature and did not compensate for pipeline transportation; they were therefore not taxable. Marketing margin formed part of the gas sale value, had suffered VAT, and did not represent consideration for an independent service to buyers because pre-sale activities were undertaken on the seller's own account and ownership passed at the agreed delivery point. Accordingly, service-tax demands on both minimum demand charges and marketing margin were unsustainable. Case-Laws Service Tax Fri, 13 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470156