Compensation/ liquidated damage cannot be treated as service to levy Service Tax

Amit Metaliks Limited Vs Commissioner of Central Goods & Service Tax (CESTAT Kolkata) As far as the compensation received from M/s Amit Mines is concerned, the Show Cause Notice mentions the leviablity of Service tax on the amount received towards the compensation for non supply of the agreed quantity of manganese ore under Section 64E(e) of Finance Act which is even otherwise is purely the transaction sale of the iron ore to the Appellant by M/s Amit Mines. Thus, the compensation amount is towards default on the sale of the goods. The sale could not be effected and, therefore, Appellant r...