2022 (2) TMI 1445 - SCH - Service Tax

Levy of service tax - liquidated damages recovered by the appellant for acts of default - delayed or deficient supplies by various suppliers - consideration for tolerance of an act or not - penalties - it was held by CESTAT that it is not possible to sustain the view taken by the Commissioner that since BHEL did not complete the task within the time schedule the appellant agreed to tolerate the same for a consideration in the form of liquidated damages which would be subjected to service tax under section 66E(e) of the Finance Act. HELD THAT - Appeal admitted. Issue notice on application for interim relief returnable on 11th February 2022.

Summary

The Supreme Court admitted the appeal and issued notice on the application for interim relief returnable on 11th February 2022. The respondent's advocate accepted the notice. The matter will be listed along with Civil Appeal No. 2372 of 2021 before the appropriate court after seeking directions from the Chief Justice of India.