Case Law Details
M/s. Ford India Pvt. Ltd. Vs. Commissioner (CESTAT Chennai)
Regarding the tax liability on the consideration received due to termination of the arrangement, we note that no identifiable service can be attributed for such consideration. It is rather a termination of arrangement which itself the original authority held as a service. We note that by terminating the arrangement, the appellants are adversely put to certain business The consideration has been paid for such loss. No identifiable service could be attributed for such payment during the material time. Accordingly, the tax liability on such consideration could not be sustained.
FULL TEXT OF THE CESTAT ORDER IS AS FOLLOWS:-
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