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TMI Blog2022 (9) TMI 1445X X X X Extracts X X X X X X X X Extracts X X X X ..... manth, Advocate For the Respondent : Shri A. Rangadham, Authorised Representative ORDER ANIL CHOUDHARY: The issue in this appeal is whether the demand of service tax has been rightly confirmed on liquidated damages/penalties recovered by the Appellant from its contractors under section 66E (e) of the Finance Act, 1994. 2. The Brief facts are that the appellant is involved in manufacture of "D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been recovering penalty/liquidated damages from the supplier as and where applicable and have been declaring these amounts under the head of other income. Some amount is also received as notice period paid recovered from the employee and miscellaneous recoveries under the bond period from 'management trainees'. 3. It appeared to revenue that the amount so collected by the Appellant falls unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of limitation is invokable on the ground of wilful suppression of the facts. 4. The Appellant contested the show cause notice by filing reply dated 15.05.2017 inter alia contending that the receipts by way of liquidated damages/penalties does not fall under the purview of declared services, as the expression "agreeing to tolerate an act" cannot be construed to include the amount which is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual penalty of Rs. 11,78,75,893/- was imposed under Section 78 of the Finance Act. 6. Being aggrieved the Appellant is in appeal before this Tribunal. 7. Learned Counsel for the Appellant urges that the issue is no longer res integra and under similar facts and circumstances, this Tribunal in the case of Steel Authority of India Ltd, Salem vs Commissioner of GST & Central Excise, 2021(7) TMI 109 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty to receive compensation nor there can be an intention of other party to breach or violate the contract and suffer a loss. This Tribunal relied on the ruling of Hon'ble Supreme Court in Tara Chand vs Balkishan AIR 1963 SC 1405. 8. Opposing the appeal, learned AR for revenue relies on the impugned order. 9. Having considered the rival contentions, we find that the issue herein is squarely c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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