Penalty collected from Contractor, being Liquidated Damages not subject to Service Tax: CESTAT [Read Order]

Penalty - Contractor - Liquidated Damages - Service Tax - CESTAT - Taxscan

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench has held that the penalty collected from a contractor, being ‘liquidated damages’ in nature, shall not attract service tax liability. The department was of the view that the assessee, M. P. Audyogik Kendra Vikas Nigam (Indore) Limited, is liable to service tax on the…

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