https://www.taxtmi.com/caselaws?id=795655 Despatch money paid for completing loading within agreed laytime is a contractual incentive or adjustment under reciprocal laytime terms, not consideration for a separately taxable service. Taxability requires an independent service rendered to another person, an identifiable recipient, and a direct nexus between that service and the payment. Where loading is incidental to an export sale arrangement and no separate quick-loading or port-service agreement exists, the contract cannot be split to characterise despatch as service consideration. Consequently, the service-tax demand lacks foundation, and related interest and penalties do not survive. en-us Tue, 21 Jul 2026 00:00:00 +0530 Sat, 25 Jul 2026 08:54:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795655 Despatch money paid for completing loading within agreed laytime is a contractual incentive or adjustment under reciprocal laytime terms, not consideration for a separately taxable service. Taxability requires an independent service rendered to another person, an identifiable recipient, and a direct nexus between that service and the payment. Where loading is incidental to an export sale arrangement and no separate quick-loading or port-service agreement exists, the contract cannot be split to characterise despatch as service consideration. Consequently, the service-tax demand lacks foundation, and related interest and penalties do not survive. Case-Laws Service Tax Tue, 21 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795655