https://www.taxtmi.com/caselaws?id=798868 Delayed-payment charges imposed for breach of electricity-bill payment obligations are not consideration for tolerating an act unless a reciprocal agreement requires tolerance for consideration; such charges remain connected to electricity distribution and recovery. Meter-testing charges are naturally bundled with electricity distribution because testing enables consumption measurement and accurate billing, so they receive the principal service's non-taxable treatment rather than becoming an independent taxable service. The extended limitation period does not apply without evidence of fraud, wilful misstatement, suppression, or intent to evade tax, particularly where charges are disclosed in tariff orders, regulations and accounts and the dispute concerns statutory interpretation. Consequently, the disputed receipts do not attract service tax, interest or penalty. en-us Fri, 11 Sep 2026 00:00:00 +0530 Mon, 14 Sep 2026 08:32:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798868 Delayed-payment charges imposed for breach of electricity-bill payment obligations are not consideration for tolerating an act unless a reciprocal agreement requires tolerance for consideration; such charges remain connected to electricity distribution and recovery. Meter-testing charges are naturally bundled with electricity distribution because testing enables consumption measurement and accurate billing, so they receive the principal service's non-taxable treatment rather than becoming an independent taxable service. The extended limitation period does not apply without evidence of fraud, wilful misstatement, suppression, or intent to evade tax, particularly where charges are disclosed in tariff orders, regulations and accounts and the dispute concerns statutory interpretation. Consequently, the disputed receipts do not attract service tax, interest or penalty. Case-Laws Service Tax Fri, 11 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798868