Service Tax Not Applicable: Compensation for Wind Turbine Maintenance Failures Isn't Payment for Tolerating Poor Service.

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....Levy of service tax - Agreeing to the obligation to tolerate the Act - The amount received by the appellant in terms of Machine Availability clause, from the service provider with reference to maintenance of WTG due to shortcoming in said service is merely an amount to safeguard the loss of appellant. The said amount cannot be called as consideration for the tolerance of service provided and some lacunae thereof nor it makes the appellant the service provider. - The concept of ‘Declared Services’ has therefore been wrongly invoked by the Department and the adjudicating authority below. - AT....