MDC for under-consumption of Gas Deemed a Penalty, Not Consideration for Service: CESTAT quashes Service Tax Demand [Read Order]

Considering the MDC for underconsumption of gas deemed penalty, CESTAT quashed the service tax demand order

By Kavi Priya - On October 2, 2024 8:06 am - 2 mins read

CESTAT Kolkata - Gas penalty - Penalty for gas consumption - TAXSCAN

The Kolkata Bench of Customs, Excise, And Service Tax Appellate Tribunal ( CESTAT ) quashed the service tax demand order ruling that Minimum Demand Charges ( MDC ) for under-consumption of gas are not taxable as it was a penalty. Assam Gas Company Limited, the appellant was receiving “Minimum Demand Charges” (MDC) from their clients…

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