https://www.taxtmi.com/caselaws?id=797984 Amounts written off as unclaimed vendor balances or other outstanding credits do not constitute consideration for tolerating an act under Section 66E(e) of the Finance Act, 1994 unless an independent express or implied contractual obligation requires one person to tolerate, refrain from, or perform an act for another and consideration flows for that obligation. Mere accounting write-back of lapsed balances as income does not establish a taxable service. The extended limitation period also requires evidence of a positive act to evade tax; absent such evidence or suppression of taxable activity, it cannot be invoked. Consequently, the service-tax demand, interest and penalty founded on such write-backs cannot be sustained. en-us Tue, 25 Aug 2026 00:00:00 +0530 Tue, 01 Sep 2026 08:26:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797984 Amounts written off as unclaimed vendor balances or other outstanding credits do not constitute consideration for tolerating an act under Section 66E(e) of the Finance Act, 1994 unless an independent express or implied contractual obligation requires one person to tolerate, refrain from, or perform an act for another and consideration flows for that obligation. Mere accounting write-back of lapsed balances as income does not establish a taxable service. The extended limitation period also requires evidence of a positive act to evade tax; absent such evidence or suppression of taxable activity, it cannot be invoked. Consequently, the service-tax demand, interest and penalty founded on such write-backs cannot be sustained. Case-Laws Service Tax Tue, 25 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797984