No Service Tax on Surrender Charges on ULIP

Reliance Life Insurance Company Ltd. Vs Commissioner of Service Tax (CESTAT Mumbai) We are of the view that the ULIP surrender charges are not part of taxable service of management of funds. Rather it is in the nature of penalty or liquidated damages which is not a service and hence cannot be made liable for tax during the period involved . FULL TEXT OF THE CESTAT JUDGMENT The appeal is directed against Order-in-Original dt. 26.11.2014 passed by the Commissioner of Service Tax, Mumbai wherein the demand against appellant was confirmed alongwith penalty and interest. 2. The facts of the case a...