2026 (5) TMI 1091

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....CHNICAL) AND HON'BLE MR. ANGAD PRASAD, MEMBER (JUDICIAL) Ms. Adithi Reddy, Advocate for the appellant. Shri V. Srikanth Rao, AR for the Respondent. ORDER PER : ANGAD PRASAD M/s Bharat Heavy Electricals Ltd (hereinafter referred to as the appellant) are in appeal against OIA dt.15.10.2018 for the period July, 2012 to March, 2016 in Appeal No.ST/30051/2019 and against OIA dt.22.03....

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....s consideration towards an act of tolerance, which is liable to service tax as 'declared service' under clause (e) of section 66E of the Finance Act, 1994 w.e.f. 01.07.2012. Therefore, demand was raised in respect of liquidity damages collected for the period from July, 2012 to June, 2016. 3. Learned Advocate for the appellant submits that the issue of levying service tax on liquidity damages, ....

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....eceived from their vendor/contractor, which the department had felt would be liable to service tax in terms of declared service under section 66E(e). However, in view of various citations including 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 Tribuna....

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....ecided the appeal in their favour. 5. Learned AR, on the other hand, is reiterating the findings of the Commissioner (Appeals). 6. Heard both sides and perused the records. 7. We find that it is an admitted fact that in this case, the demand has been made on the amount collected as liquidity damages by treating the same as chargeable to service tax as declared service in terms of section ....