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2023 (12) TMI 1242 - AT - Service TaxLevy of service tax - Declared Service - relinquishment charges under section 66E (e) of the Finance Act - charges are in the nature of consideration received towards rendition of the declared service i.e. tolerating of relinquishing access rights - HELD THAT:- It is well settled that the amount paid in the nature of compensation/damages on account of breach or non-performance of contract would not be considered in lieu of any service and, therefore, would not be leviable to service tax. In view of the decision of the Tribunal in South-Eastern Coalfields Ltd. [2020 (12) TMI 912 - CESTAT NEW DELHI], it has to be held that relinquishment charges are not consideration received towards rendition of a declared service under section 66E (e) of the Finance Act. It would not be necessary to examine the alternative submission made by the learned counsel for the appellant that in any view of the matter, the relinquishment charges recovered by the appellant are part of the electricity transmission service and, therefore, would be covered under the Negative List under section 66D (k) of the Finance Act. The order dated 04.03.2021 passed by the Principal Commissioner cannot be sustained and is set aside - Appeal allowed.
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