Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 900 - AT - Service TaxDeclared Service or not - amount deducted by the appellant towards the compensation for not supplying the WHR boiler in time - section 66E(e) of Finance Act 1994 - HELD THAT:- In the present case, it is not the case of the department that the agreement provides for a consideration for an obligation to refrain from an act or for agreeing to tolerate an act or a situation. The demand, therefore, could not have been confirmed in view of decision 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] and the Circular dated 28.02.2023 - In the said case it was held that The activities, therefore, that are contemplated under Section 66E(e), when one party agrees to refrain from an act, or to tolerate an act or a situation, or to do an act, are activities where the agreement specifically refers to such an activity and there is a flow of consideration for this activity. The order dated 04.10.17 passed by the Commissioner (Appeals) cannot, therefore, be sustained and is set aside - The appeal is, accordingly, allowed.
|