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TMI Blog2024 (3) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... eing consideration for providing deemed service. The judgment have been accepted by the Board vide Circular No.214/2023-S.T. dated 28.02.2023. The impugned order is set aside and the appeal is allowed. - DR. D.M. MISRA, MEMBER (JUDICIAL) AND MRS. R. BHAGYA DEVI, MEMBER (TECHNICAL) Shri B. Venugopal, Advocate for the Appellant Shri P. Saravana Perumal, Authorised Representative for the Respondent ORDER This is an appeal filed against Order-in-Appeal No.593/18 CT dated 18.02.2019 passed by the Commissioner of Central Excise (Appeals) Bangalore. 2. Briefly stated the facts of the case are that on the basis of intelligence, the appellant was issued with a show-cause notice alleging that the appellant is recovering liquidated damages for delay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in appellant s own case for Bhopal / Dehradun Unit. Referring to the earlier judgment of the Tribunal on the same issue, it is observed as follows: 7. We find that this issue is no more res integra. This Tribunal in the case of Steel Authority of India Ltd. (supra) has held as follows: 16. In this connection it would be appropriate to reproduce the relevant portions of the decision of the Tribunal in South Eastern Coalfields and they are as follows: 25. It is in the light of what has been stated above that the provisions of section 66E(e) have to be analyzed. Section 65B(44) defines service to mean any activity carried out by a person for another for consideration and includes a declared service. One of the declared services contemplated u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious types of services. The intention of the parties certainly was not for flouting the terms of the agreement so that the penal clauses get attracted. The penal clauses are in the nature of providing a safeguard to the commercial interest of the appellant and it cannot, by any stretch of imagination, be said that recovering any sum by invoking the penalty clauses is the reason behind the execution of the contract for an agreed consideration. It is not the intention of the appellant to impose any penalty upon the other party nor is it the intention of the other party to get penalized. 28. It also needs to be noted that section 65B(44) defines service to mean any activity carried out by a person for another for consideration. Explanation ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s own case vide Final Order No. 50879/2022 dated 20.09.2022 in Service Tax ST/COD/50047/2023 In DD/53463/2022 5 Appeal No. 50080 of 2019, however for Bhopal unit with respect to goods and transport service , is also about the same issue holding the receiving liquidated damages due to violation of terms of contract does not amount to any such act as may be called as declared service. The amount cannot be made liable to tax in the name of it being consideration for providing deemed service. 9. We also observe that even the decision as relied upon by the department passed after the Circular dated 03.08.2022, it has been held that though the circular emphasized that there has to be an express or implied agreement to do or abstain from doing som ..... X X X X Extracts X X X X X X X X Extracts X X X X
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