Amount of damages received for tolerating breach of contract not leviable to service tax

Chennai Metro Rail Ltd Vs Commissioner of GST & Central Excise (CESTAT Chennai) CESTAT Chennai held that the amount of damages received for tolerating the breach of contract by contractors and sub-contractors is not consideration. Any amount, which is not a consideration for provision of service, cannot be subjected to service tax. Facts- Chennai Metro Rail Ltd. (CMRL) is a joint venture between the Government of India and the Government of Tamil Nadu that builds and operates Chennai Metro, which is proposed to ba a rapid transport serving the city of Chennai. Intelligence developed by the...