service tax under this head
and has deposited the same ;
(vi) Liquidated damages : The appellant, in the course
of its business gives certain work contract ... Wherever the contractor fails to meet its
obligations, the appellant collects liquidated damages
from the contractors as per the contracts. Revenue
seeks to charge service
cylinder is being recovered by the appellant from the buyer as damages. Thus, it is not the case of the buyer supplying cylinders free ... recovering part of the cost of cylinders from the buyer as damages. In these circumstances, Rule 6 of the Central Excise Valuation Rules
CESTAT New Delhi, it was held that liquidated damages received by the
appellant from other parties who failed to perform as per the contracts would ... that if the suffering
party sues the other in a Court and damages are awarded by the Court, such
damages are unliquidated damages. The quantum
argued that the issue as to whether the penalties
recovered as Liquidated Damages are liable for
Service Tax or not have been consistently answered ... 75327, 75655, 75656, 75749/2021-DB
(c) It is not Liquidated Damages / Sec 66(e) -
Circular No. 178 / 10/2022-GST dated.3rd
August
argued that the issue as to whether the penalties
recovered as Liquidated Damages are liable for
Service Tax or not have been consistently answered ... 75327, 75655, 75656, 75749/2021-DB
(c) It is not Liquidated Damages / Sec 66(e) -
Circular No. 178 / 10/2022-GST dated.3rd
August
argued that the issue as to whether the penalties
recovered as Liquidated Damages are liable for
Service Tax or not have been consistently answered ... 75327, 75655, 75656, 75749/2021-DB
(c) It is not Liquidated Damages / Sec 66(e) -
Circular No. 178 / 10/2022-GST dated.3rd
August
argued that the issue as to whether the penalties
recovered as Liquidated Damages are liable for
Service Tax or not have been consistently answered ... 75327, 75655, 75656, 75749/2021-DB
(c) It is not Liquidated Damages / Sec 66(e) -
Circular No. 178 / 10/2022-GST dated.3rd
August
such penal interest would be
treated as consideration for liquidated damages [amounting to a separate
taxable supply of services under GST covered under entry ... view that
penalty amount, forfeiture of earnest money deposit and liquidated damages have
been received by the appellant towards consideration for tolerating an act leviable
retained a portion of the
advance deposited by the customers as liquidated
damages and booked the same in its financials as
'forfeiture income ... forfeiture income'
is nothing but in the nature of penalty/liquidated
damages levied by the Appellant on the customers for
cancellation of bookings
Compensation received for termination of JDA is in the
nature of liquidated damages. Thus, they are not exigible to
Service Tax. Issue is no longer ... bookings is unsustainable.
• Forfeiture money is in the nature of liquidated damages
received for breach of contact. The Appellant adopts the
submissions made for demand
