https://www.taxtmi.com/caselaws?id=795166 Minimum Demand Charges recovered for failure to lift the contracted minimum gas quantity are penal amounts for non-utilisation, not consideration for transportation of gas through pipeline or conduit; they are therefore not liable to Service Tax. Marketing margin included in the sale consideration for natural gas, on which VAT is paid, is not consideration for an independently supplied service because pre-sale activities are undertaken by the seller without an identifiable service provider-recipient relationship. Accordingly, Service Tax demands on both Minimum Demand Charges and marketing margin cannot be sustained. en-us Tue, 14 Jul 2026 00:00:00 +0530 Sat, 18 Jul 2026 08:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795166 Minimum Demand Charges recovered for failure to lift the contracted minimum gas quantity are penal amounts for non-utilisation, not consideration for transportation of gas through pipeline or conduit; they are therefore not liable to Service Tax. Marketing margin included in the sale consideration for natural gas, on which VAT is paid, is not consideration for an independently supplied service because pre-sale activities are undertaken by the seller without an identifiable service provider-recipient relationship. Accordingly, Service Tax demands on both Minimum Demand Charges and marketing margin cannot be sustained. Case-Laws Service Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795166