Honda Cars not liable to Service Tax on amount retained after cancellation

Honda Cars India Ltd. Vs The Commissioner, Central Excise and Service Tax (CESTAT Delhi) The charge leveled against the appellant, in the show cause notice, that JPY 130,000,000/- was paid towards the first installment mentioned in the Technical Agreement/ Model Agreement amounting to JPY 400,000,000/- is factually incorrect. As noticed above, JPY 130,000,000/- was paid by the appellant to Honda Japan in terms of the Termination Agreement to compensate Honda Japan towards the cost, expenses and non-cancellable commitment incurred by Honda Japan towards the commencement of the volume production...