9911796707
TMI Blog2023 (5) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... also be termed as Consideration for provision of the taxable service. Thus, the amount charged by the appellant towards liquidated damages / penalty cannot form part of the taxable value for payment of service tax thereon. Reliance can be placed in appellant own case BHEL Bhopal Vs. CCE [ 2022 (9) TMI 1005 - CESTAT NEW DELHI ] - the order passed by this Tribunal in the case of the appellant itself has also been accepted by Service Tax Department inasmuch as no appeal against the said order was filed before the Hon ble Supreme Court. Leviability of service tax on the declared service under the category Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act under clause (e) of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... INAL ORDER NO. A/85628/2023 - Dated:- 26-4-2023 - MR. S.K. MOHANTY, MEMBER (JUDICIAL) AND MR. M. M. PARTHIBAN, MEMBER (TECHNICAL) Shri Z. U. Alvi, Advocate for the Appellant Shri Piyush Badhe, Authorized Representative for the Respondent ORDER Heard both sides and perused the records. 2. The applicant/appellant has filed this miscellaneous application, seeking early hearing of the appeal. Ongoing through the averments made in the said application, we are of the view that the prayer made in support of out of turn hearing of the appeal can be considered, in the interest of justice. Accordingly, miscellaneous application filed by the applicant is allowed. Since, the issue involved in this appeal lies in a narrow comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and repair/maintenance services of power plants. For carrying out such activities, the appellant procures the material as well as services from the contractors/ suppliers. For the said purpose, the appellant entered into various contracts, which inter-alia provide for liquidated damages/ penalty at the prescribed rate both in respect of supply of goods as well as for completion of the assigned work. The said clause in the contracts stipulates that if the contractor / job worker fails to maintain the required progress of work, which results in delay in the completion of the project work, the appellant shall impose the above charges or penalties on them. On perusal of the case records, we find that for provision of the taxable services, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urthermore, with regard to the issue of leviability of service tax on the declared service under the category Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act under clause (e) of Section 66E of the Finance Act, 1994 , the CBIC vide Circular No. 214-1-2023-ST dated 28.02.2023 has clarified that the above expression has three limbs namely, agreeing to the obligation to refrain from an act; agreeing to the obligation to tolerate an act or a situation; and agreeing to the obligation to do an act. It has further been clarified that in order to be covered under such phrase, there must be independent contractual arrangements and must have necessary and sufficient nexus between the supply (ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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