Sponsored
    Follow Us:

Case Law Details

Case Name : South Eastern Coalfields Ltd. Vs Commissioner of Central Excise and Service Tax (CESTAT Delhi)
Appeal Number : Service Tax Appeal No. 50567 of 2019
Date of Judgement/Order : 22/12/2020
Related Assessment Year :
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

South Eastern Coalfields Ltd. Vs Commissioner of Central Excise and Service Tax (CESTAT Delhi)

The Principal Bench of Hon’ble CESTAT set aside the Service Tax demand of Rs. 32.76 Crores approx., plus equal penalty and applicable interest, on the amount of Liquidated Damages / Forfeiture of EMD / Penalty recovered from the various contractors & suppliers / Coal buyers under FSA and coal e-Auction scheme. The said demand was raised by invoking the provisions contained in Section 66E(e) as ‘Declared Service’ which reads as “agreeing to an obligation or to refrain from an act or to tolerate an act or a situation or an act”.

It was held that it not possible to sustain the view taken by the Principal Commissioner that penalty amount, forfeiture of earnest money deposit and liquidated damages have been received by the appellant towards “consideration” for “tolerating an act” leviable to service tax under section 66E(e) of the Finance Act.

FULL TEXT OF THE CESTAT JUDGEMENT

This appeal has been filed by M/s South Eastern Coalfields Ltd.1 to assail the order dated December 18, 2018 passed by the Chief Commissioner, officiating as the Principal Commissioner, by which the demand of service tax has been confirmed with interest and penalty by invoking the extended period of limitation contemplated under the proviso to section 73 of the Finance Act, 19942.

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031