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2023 (1) TMI 509 - AT - Service TaxPrice reduction clause - levy of service tax on liquidated damages - declared services or not - applicability of CBIC vide circular no.178/10/2022-GST dated 3rd August, 2022 - HELD THAT:- CBIC has issued a circular No.178/10/2022-GST dated 3rd August, 2022 in which it has stated its stand on the issue of taxability of various transactions claimed to be “liquidated damages”. At the time of adjudication by commissioner and hearing before tribunal, this circular was not available on record and therefore, the adjudicating authority could not take benefit of the same. While the issue of levibility of service tax on liquidated damages is a debatable issue, the CBIC has vide Circular No. 178/10/2022-GST clarified its stand on the subject in respect of GST. The circular was not available to the adjudicating authority when the matter was decided and he could not examine the issue in the light of the aforesaid circular. The issue in dispute can be decided in the light of the aforesaid circular. The impugned order is set aside and the matter is remanded to the original adjudicating authority to decide the issue afresh - Appeal allowed by way of remand.
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