2026 (5) TMI 269

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....ember (Judicial) For the Appellant : Shri Ch. Sumanth, Advocate For the Respondent : Shri V. Srikanth Rao, AR ORDER PER: A.K. JYOTISHI: M/s Bharat Heavy Electricals Ltd (hereinafter referred to as the appellant) are in appeal against OIA dt.30.01.2020, whereby, the Commissioner (Appeals) has upheld the OIO dt.14.08.2018, wherein, the adjudicating authority has confirmed demand of Rs....

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....s raised in respect of liquidity damages collected for the period from 01.07.2012 to 30.06.2017. 3. Learned Advocate for the appellant submits that the issue of levying service tax on liquidity damages, as a declared service, is no longer res integra as in catena of judgments, the same has been held as not leviable to service tax by various Benches of the Tribunal. He invited our attention to t....

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....ng Steel Authority of India Ltd, Salem Vs CGST & CE [2021 (7) TMI 1092 (Chennai)] and South Eastern Coal Fields Ltd Vs CCE & ST, Raipur (supra), where under the similar facts and circumstances, the Tribunals have held that no service tax is payable on the amount collected towards LD as such LD/penalty cannot be considered as receipts towards any service, per se. Therefore, in view of the same, the....

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....clared service in terms of section 66E(e). We find from the impugned order that the appellants were collecting certain amount, which they had declared as liquidity damages in their books of accounts from their supplier/service. These liquidity damages were charged only when the supplier or the service provider failed to deliver the goods or perform the service within the time limit specified in th....