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TMI Blog2023 (12) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of "Coal". They are holding service tax registration for providing various services namely Goods Transport Agency Services, Renting of Immovable Property Service, Works Contract Service, Legal Consultancy service, Security Agency Service, Rent a Cab Operator Service etc. While auditing the accounts of the appellant for the period from March 2011 to March 2014 it was observed that the appellant has recovered total amount of Rs. 6,41,59,866/- towards penalty/liquidated damages recovered from their customers and contractors during the period July 2012 to March 2014. On being asked, the appellant conveyed that the amount were recovered/forfeited as penalty or liquidated damages recovered from the customers who failed to lift the quantity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue. 4. Learned counsel for the appellant has submitted that the issue involved in the present appeal is whether the service rendered by the appellant can be called as „declared service‟ under Section 66E (e) of Finance Act, 1994 which reads "agreeing to the obligation to recover from an Act or to start an Act or a situation, or to do an Act", introduced in the statute w.e.f. 1st July 2012. It is also mentioned that the said issue stands already decided in favour of the appellant/assessee by this Tribunal vide the final order No. 51651 of 2020 dated December 22, 2020 in appellant‟s own case in Service Tax Appeal No. 50567 of 2019. The present appeals are also prayed to be allowed in terms of the said order. 5. Le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal No. 511 of 2011 (LB) decided on June 6, 2020 (vii) GE T & D India Limited versus Deputy Commissioner of C. Ex., Chennai 2020 (35) G.S.T. 89 (Mad.) (viii) Fateh Chand versus Balkishan Das AIR 1963 SC 1405 After considering the various provisions of Indian Contract Act therewith, it has been held that liquidated damages/ compensation for the breach of contract can be awarded to make good the loss or damage which actually arises or which the parties knew when they made the contract, "to be likely to result from the breach". Hence it cannot be concluded that sum received is synonymous to "tolerating". It is absolutely wrong to say that in breach of contract one appellant tolerates an Act or a situation, hence, the view taken by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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