TMI Blog2022 (6) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... is no contract between the appellant and their contractor - to refrain from an act or to tolerate an act or a situation or to do an act in favour of their contractor or to tolerate any act or situation. Further, for such alleged act or tolerance, no remuneration is prescribed in the contract. The amount of liquidated damages levied by the appellant from their contractor is in the nature of penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 3-6-2022 - Mr. Anil Choudhary, Member (Judicial) Sh. Ankur Upadhyay, Advocate for the appellant Ms. Tamanna Alam, Authorised Representative for the respondent ORDRER Heard the parties. 2. The issue involved in this appeal is whether the appellant M. P. Audyogik Kendra Vikas Nigam (Indore) Limited, is liable to service tax on the amount of penalty (liquidated damages) col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Section 76 alongwith interest under Section 75. 4. Show cause notice was adjudicated on contest and the proposed demands was confirmed with equal amount of penalty under Section 78 (which was not proposed in the show cause notice). Further, interest was also ordered to be calculated and collected. 5. Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do not fall in the mischief as provided under this Section. Learned Counsel relied upon the ruling in the case of Lemon Tree Hotel vs. Commissioner, GST, CE Customs, Indore -2020 (34) GSTL 220 (Tri. Del.). 7. Learned Authorised Representative appearing for the Revenue relies on the impugned order. 8. Having considered the rival contentions, I find that under the facts and circumstances th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal held that the said amount collected by the hotel is in the nature of penalty, and not consideration as defined under Section 66E(e) of the Finance Act, 1994. 9. Accordingly, in view of my findings as above, I allow this appeal and set aside the impugned order. The appellant is entitled to consequential benefits. (Dictated and pronounced in open Court). - - TaxTMI - TMITax - Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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