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2023 (5) TMI 863 - AT - Service TaxValuation - receiving damages/compensation from the service provider - declared service as per the provisions contained in Section 66E(e) of Finance Act, 1994 - HELD THAT:- The Tribunal in the case of M/S MADHYA PRADESH POORVA KSHETRA VIDYUT VITARAN COMPANY LIMITED VERSUS COMMISSIONER OF CGST & CENTRAL EXCISE, MADHYA PRADESH [2022 (4) TMI 773 - CESTAT NEW DELHI] has dealt an identical issue and has held against the Revenue, holding that the amount received as compensation for breach of contract should not be considered as taxable service within the purview of ‘declared service’ as per Section 66E ibid. It is also found that the Tax Research Unit of the Department of Revenue in the Ministry of Finance vide Circular dated 3rd August, 2022 has specifically clarified that the compensation received on account of breach of contract should not form part of declare service for the purpose of payment of service tax by the assessee. There are no merits in the impugned order passed by the Learned adjudicating authority - appeal allowed.
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