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TMI Blog2024 (10) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... service or not - HELD THAT:- The Adjudication authority has no reason to confirm demand of service tax on the amount received by the Appellant as compensation for short lifting of electricity, since it was not on account of any obligation to tolerate an act, hence is not a service under Section 66E(e) of the Finance Act, 1994, Hence, the impugned order deserves to be set aside. The impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of clause, procurer/customer is required to pay compensation, if they violate the terms and conditions of the agreement. Since the compensation amount/liquidated damage received by the Appellant is falling under the category of declared service in terms of provisions of Section 66E(e) of the Finance Act, 1994, proceedings were initiated and as per impugned order dated 14.03.2019, the Adjudicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel relied on the following decisions in support of their claim. i. M/s Bhayana Builders (P) Ltd Vs. Commissioner of Service Tax, Delhi (2013 (32) STR 49) ii. Commissioner of Customs Central Excise Hyderabad-IV Vs. M/s Victory Electricals Ltd (2013 (298) E.L.T 534 (Tri.LB) iii. Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Ltd., Order No. 13/2018 dated 18.09.2018 iv. M/s TP Ajmer Dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of CGST Excise, Bhubaneshwar (2022 (62) GSTL 186 (Tri. Kolkata) xii. Final Order No.50128/2024 dated 17.01.2024 in the matter of M/s Bharat Aluminum Company Ltd 4. The Learned Counsel also relied on the Circular No. 214/1/2023-ST dated 22.02.2023 and submits that liquidated damages paid towards short lifting of power cannot be subject to service tax under Section 66E(e) of the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant as compensation for short lifting of electricity, since it was not on account of any obligation to tolerate an act, hence is not a service under Section 66E(e) of the Finance Act, 1994, Hence, the impugned order deserves to be set aside. 8. In view of the above discussion and following the ratio of the above judgements/decisions the impugned order is set aside with consequential relie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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