Service Tax on Liquidated Damages: Authorities to Reexamine Definitions Under Indian Contract Act, 1872.

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....Levy of service tax - receipt of liquidated damages for compensating the appellant against the poor quality of material supplied - Both the authorities also have not dealt with the distinction between the ‘liquidated damage’ as claimed to have received by the appellant and the ‘consideration’, which department want to impose. Both the terms have been defined legally separately in the Indian Contract Act, 1872. - Matter restored back - AT....