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TMI Blog2024 (6) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... al held that ' It is, therefore, not possible to sustain the view taken by the Principal Commissioner that penalty amount, forfeiture of earnest money deposit and liquidated damages have been received by the appellant towards consideration for tolerating an act leviable to service tax under section 66E(e) of the Finance Act.' As it has been held by the Tribunal that on the said forfeited amount or amount received by an appellant, the appellant is not liable to pay Service Tax, in these circumstances, it is held that the appellant is not liable to pay Service Tax under Section 66E(e) of the Finance Act, 1994. There are no merit in the impugned order and accordingly, the same is set aside - appeal allowed. - SHRI ASHOK JINDAL, MEMBE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand of Service Tax was confirmed against the appellant vide adjudication order. Aggrieved from the said order, the appellant is before us. 5. The Ld. Counsel appearing on behalf of the appellant submits that the said issue has been settled by the Tribunal in the case of M/s. South Eastern Coalfields Ltd. v. Commissioner of Central Excise and Service Tax, Raipur [2020 (12) TMI 912 CESTAT, New Delhi =2021 (55) G.S.T.L. 549 (Tri. Del.)] and thus, the issue is no longer res integra; in view of that, he submits that the impugned order is to be set aside. 6. On the other hand, the Ld. Authorized Representative appearing on behalf of the respondent reiterated the findings in the impugned order. 7. Heard the parties and considered their submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar that where service tax is chargeable on any taxable service with reference to its value, then such value shall be determined in the manner provided for in (i), (ii) or (iii) of subsection (1) of section 67. What needs to be noted is that each of these refer to where the provision of service is for a consideration , whether it be in the form of money, or not wholly or partly consisting of money, or where it is not ascertainable. In either of the cases, there has to be a consideration for the provision of such service. Explanation to sub-section (1) of section 67 clearly provides that only an amount that is payable for the taxable service will be considered as consideration . This apart, what is important to note is that the term considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement has to be read as a whole so as to gather the intention of the parties. The intention of the appellant and the parties was for supply of coal, for supply of goods; and for availing various types of services. The consideration contemplated under the agreements was for such supply of coal, materials or for availing various 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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