2022 (9) TMI 1457

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....ommissioner (Appeals), CGST & Central Excise, Bhopal the Commissioner (Appeals) by which the order dated 31.03.2019 passed by the Additional Commissioner has been set aside and the appeal has been allowed. The Additional Commissioner had confirmed the demand of service tax for the period 01.07.2012 to 31.03.2017 with interest and penalty. 2. The issue involved in this appeal is as to whether the charges collected by the respondent towards penalty/late delivery charges can be subjected to service tax under section 66E (e) of the Finance Act, 1994 the Finance Act. 3. The respondent is a Central Government Public Sector Undertaking engaged in the manufacture of plant and machinery. According to it, for supply of goods and services to the eng....

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....erating the act or situation for a consideration. 6. Shri Z.U. Alvi, learned counsel appearing for the respondebt has submitted that this issue as to whether the amount collected towards liquidated charges can be subjected to service tax under section 66E (e) of the Finance Act has been decided by a Division Bench of the Tribunal in M/s South Eastern Coal Fields Ltd. Vs. Commissioner of Central Excise And Service Tax, Raipur 2020 (12) TMI 912-CESTAT-NEW DELHI which was subsequently followed by the Tribunal in M.P. Poorva Kshetra Vidyut Vitran Co. Ltd. Vs. Principal Commissioner, CGST And Central Excise, Bhopal 2021 (2) TMI 821-CESTAT NEW DELHI. 7. Learned counsel for the respondent is justified in submitting that the issue stands covered ....

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....n to the other two activities referred to in Section 66E(e). 27. It is trite that an agreement has to be read as a whole so as to gather the intention of the parties. The intention of the appellant and the parties was for supply of coal; for supply of goods; and for availing various types of services. The consideration contemplated under the agreements was for such supply of coal, materials or for availing various types of services. The intention of the parties certainly was not for flouting the terms of the agreement so that the penal clauses get attracted. The penal clauses are in the nature of providing a safeguard to the commercial interest of the appellant and it cannot, by any stretch of imagination, be said that recovering any sum ....