https://www.taxtmi.com/caselaws?id=801026 Cancellation, refund and no-show charges collected by an airline are liquidated damages for a passenger's breach of the carriage contract, not consideration for a separate declared service of agreeing to tolerate an act. Section 66E(e) of the Finance Act, 1994 applies only where an agreement is intended to tolerate an act in return for consideration. The passenger-airline contract is for carriage against fare, while such charges arise only when the passenger cancels, seeks a refund or fails to travel. They are therefore not taxable under the declared-service provision, and abatement is immaterial. en-us Tue, 13 Oct 2026 00:00:00 +0530 Thu, 15 Oct 2026 05:44:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801026 Cancellation, refund and no-show charges collected by an airline are liquidated damages for a passenger's breach of the carriage contract, not consideration for a separate declared service of agreeing to tolerate an act. Section 66E(e) of the Finance Act, 1994 applies only where an agreement is intended to tolerate an act in return for consideration. The passenger-airline contract is for carriage against fare, while such charges arise only when the passenger cancels, seeks a refund or fails to travel. They are therefore not taxable under the declared-service provision, and abatement is immaterial. Case-Laws Service Tax Tue, 13 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801026