Liquidated Damages Not Taxable Under Section 66E(e): CESTAT Delhi

Principal Commissioner Vs Bharat Heavy Electricals Limited (BHEL) (CESTAT Delhi) The CESTAT Delhi considered an appeal filed by the Principal Commissioner challenging the order of the Commissioner (Appeals), which had set aside the order of the Additional Commissioner confirming service tax, interest and penalty for the period from 1 July 2012 to 31 March 2017. The dispute concerned whether penalty or late delivery charges collected by the respondent under contractual liquidated damages clauses were liable to service tax under Section 66E(e) of the Finance Act, 1994. The respondent, a Central ...