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TMI Blog2025 (5) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of zinc lead ingots, copper sulphate solutions, HZP dust etc. During the course of the audit of the appellant's record, the department observed that for the period from 2013 to March 2016 the appellant received miscellaneous income in the name of fine, penalties from contractors and in the name of security deposit, earnest money it has failed to pay service tax on the said amount. The department formed the opinion that the said amount is received for agreeing to the obligation to refrain from an act, or to tolerate an act or a situation or to do an act which is amount to 'Declared Service' in terms of Section 66 E(e) of the Finance Act, 1994 and the that said service is liable to taxed. Accordingly a show cause notice bearing no. 55 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tract any further. 5. It is submitted that this issue is no longer res integra its sands decided in an appellant's own case. The order-in-appeal under challenge has ignored such previous decisions, hence the impugned O-I-A is prayed to be set and appeal is prayed to be allowed. 6. Learned authorized representative has conceded the earlier decisions in favour of the assessee, however, has reiterated the findings arrived at by the Commissioner (Appeals). 7. Having heard both the parties. We observe that the issue involved in the present case is: "Whether the income received as "forfeiture of security Deposit/ Earnest Money Deposit" and "Fine penalties recovered from contractors" by the appellant is a taxable declared service under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stries Pvt. Ltd. v. Commissioner of CGST & Central Excise, Kanpur [2019-VIL-731-CESTAT-ALH-ST] wherein it was held that if a contract provides for an eventuality which is uncertain and also remedy if that eventuality occurs, such charges made towards making good the damages, losses or injuries arising from unintended events cannot be considered to be the payments for any services under Section 66E(e) of Finance Act, 1994. (ii) M/s. Monnet Ispat & Energy Ltd. v. CCE & ST, Raipur [2018 (9) TMI 1514] - while deciding whether Service Tax liability arises on the UI Charges received by the Company in terms of Section 66E(e) of the Finance Act, 1994, the Court held that UI Charges have been received by the Appellant only in those cases where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of service, as a necessary corollary, it is the value of the services which are actually rendered, the value whereof is to be ascertained for the purpose of calculating the Service Tax payable thereupon. (v) M/s. M.P. Poorva Kshetra Vidyut Vitran Co. Ltd. v. Principal Commissioner CGST and CE, Bhopal [2021 (2) TMI 821]/2021 (46) G.S.T.L. 409 (Tri. - Del.), wherein the ratio of the decision in the case of M/s. South Eastern Coalfields (supra) was followed and the order confirming the demand of Service Tax on the amount collected towards liquidated damages and theft of electricity was set aside." 9. From the perusal of these decisions it becomes abundantly clear that the issue of considering a forfeited amount as an amount of consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the case of Commissioner of Central Excise and Service Tax vs. South Eastern Coal Fields Limited in Civil Appeal No. 2372/2021. 12. In appellant's own case vide Final order No. 59733/2024 dated 04.11.2024, CESTAT Delhi, while relying upon the decision of South Easter Coal (supra) has set aside the demand of service tax confirmed on the identical allegations holding that the penalties, fines and forfeited amounts cannot be treated as consideration towards declared services defined under section 66 E(e) of the Finance Act. 13. In light of this discussion, we observe that adjudicating authorities below have ignored the earlier decisions. Hence, the act of the authority is held to be an act of judicial indiscipline. The authorities below ..... X X X X Extracts X X X X X X X X Extracts X X X X
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