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2022 (9) TMI 1457 - AT - Service TaxLevy of Service tax - charges collected by the respondent towards penalty/late delivery charges - section 66E (e) of the Finance Act, 1994 the Finance Act - Central Government Public Sector Undertaking - HELD THAT:- This issue as to whether the amount collected towards liquidated charges can be subjected to service tax under section 66E (e) of the Finance Act has been decided by a Division Bench of the Tribunal in M/S SOUTH EASTERN COALFIELDS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, RAIPUR [2020 (12) TMI 912 - CESTAT NEW DELHI] which was subsequently followed by the Tribunal in M.P. POORVA KSHETRA VIDYUT VITRAN CO. LTD. VERSUS PRINCIPAL COMMISSIONER CGST AND CENTRAL EXCISE BHOPAL [2021 (2) TMI 821 - CESTAT NEW DELHI] where it was held that it is not possible to sustain the order passed by the Principal Commissioner confirming the demand of service tax on the amount collected towards liquidated damages and theft of electricity. It, therefore, follows that the liquidated damages collected by the respondent as penalty/late delivery charges cannot be subjected to service tax under section 66E (e) of the Finance Act - appeal of Revenue dismissed.
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