https://www.taxtmi.com/caselaws?id=796285 Premiums retained when life-insurance policies lapse or are repudiated for non-payment or misdeclaration do not constitute consideration for agreeing to tolerate an act under Section 66E(e) of the Finance Act, 1994. Such retention is an incident of the original insurance contract, which becomes void or lapses on specified defaults, rather than consideration for an independent obligation to tolerate those defaults. A declared service requires a specific contractual obligation to refrain from, tolerate, or do an act, with a direct nexus between that obligation and the consideration. Taxing retained premiums separately would also result in double taxation. Accordingly, the service-tax demand, interest and penalties are unsustainable. en-us Fri, 31 Jul 2026 00:00:00 +0530 Tue, 04 Aug 2026 08:39:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796285 Premiums retained when life-insurance policies lapse or are repudiated for non-payment or misdeclaration do not constitute consideration for agreeing to tolerate an act under Section 66E(e) of the Finance Act, 1994. Such retention is an incident of the original insurance contract, which becomes void or lapses on specified defaults, rather than consideration for an independent obligation to tolerate those defaults. A declared service requires a specific contractual obligation to refrain from, tolerate, or do an act, with a direct nexus between that obligation and the consideration. Taxing retained premiums separately would also result in double taxation. Accordingly, the service-tax demand, interest and penalties are unsustainable. Case-Laws Service Tax Fri, 31 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796285