No Service Tax on Liquidated Damages for Contract Breach Due to Absence of Service Element

Brahmos Aerospace Pvt Ltd Vs Commissioner of Central Tax (CESTAT Hyderabad) CESTAT Rules Liquidated Damages Not Taxable Because They Are Not Consideration for Tolerating Delay; Service Tax Not Payable on Liquidated Damages for Contract Breach Due to Absence of Service Element; CESTAT Sets Aside Tax Demand on Delay Penalty Due to Absence of Service Element; Liquidated Damages Cannot Be Taxed Under Section 66E(e) Without Agreement to Tolerate Breach; CESTAT Hyderabad Relies on Earlier Precedents to Delete Service Tax on Liquidated Damages. In Brahmos Aerospace Pvt Ltd Vs Commissioner of Central ...