TMI BlogLeviability of Service Tax on the declared service “Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act" under clause (e) of section 66E of the Finance Act, 1994X X X X Extracts X X X X X X X X Extracts X X X X ..... Ministry of Finance Department of Revenue Central Board of Indirect Tax Customs (CX ST Wing) New Delhi, dated: 28th February, 2023 To, 1. The Principal Chief Commissioner / Chief Commissioner, CGST CX (All) 2. The Principal Director General/ Director General (All) 3. The Principal Commissioner / Commissioner, CGST CX (All) 4. Webmaster.cbic@icegate.go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty arising out of breach of contract or other provisions of law, and its applicability to service tax related issues. 2. It may be seen that Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act is a Declared Service as per clause (e) of section 66E of the Finance Act, 1994 . A service conceived in an agreement where one person agrees to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeing to the obligation to do an act. Service of agreeing to the obligation to refrain from an act or to tolerate an act or a situation, or to do an act is nothing but a contractual agreement. A contract to do something or to abstain from doing something cannot be said to have taken place unless there are two parties, one of which expressly or impliedly agrees to do or abstain from doing something ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 12.8.2022 in case of M/s Western Coalfields Ltd. Further, Board has decided not to pursue the Civil Appeals filed before the Apex Court in M/s South Eastern Coalfields Ltd. supra (CA No. 2372/2021) , M/s Paradip Port Trust (Dy. No. 24419/2022 dated 08-08-2022), and M/s Neyveli Lignite Corporation Ltd (CA No. 0051-0053/2022) on this ground. 6. In view of above, it is clarified that the act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard. 7. Difficulty experienced, if any, in implementing the circular should be brought to the notice of the Board. Hindi version will follow. Yours faithfully, (Rubal Saroha) Under Secretary to the Government of India - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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