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2024 (6) TMI 763 - AT - Service TaxIssues involved: Appeal against demand of Service Tax u/s 66E(e) of the Finance Act, 1994 on amounts received as Liquidated Damages, Security Deposit, Earnest Money Deposit, and Retention Money; Contest on merits and limitation; Interpretation of consideration for tolerating an act u/s 66E(e). The appellant appealed against the demand of Service Tax under Section 66E(e) of the Finance Act, 1994, on amounts received as Liquidated Damages, Security Deposit, Earnest Money Deposit, and Retention Money. An investigation led to a Show Cause Notice being issued to demand Service Tax for the period from October 2013 to June 2017, based on the grounds that the amounts received were considered as a consideration against tolerating an act under Section 66E(e). The appellant contested the issue on merits and limitation, which resulted in the demand being confirmed. The appellant then approached the Tribunal, citing a previous case to support their argument that the issue had been settled. The Tribunal considered the arguments presented by both parties and examined the relevant legal provisions, including Section 66E(e) and related definitions. The Tribunal referred to previous judgments and legal interpretations to determine the scope of consideration for tolerating an act. Ultimately, the Tribunal held that the appellant was not liable to pay Service Tax under Section 66E(e) of the Finance Act, 1994, based on the interpretation of the contractual agreements and the nature of the amounts received. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief deemed necessary.
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