No Service Tax on amount collected towards bouncing of cheque charges

Rohan Motors Limited Vs Commissioner of Central Excise (CESTAT Delhi) The demand of service tax in respect of the amount collected on account of bouncing of cheques and cancellation of orders is also not sustainable. These amount are penal in nature and not towards consideration for any service. In this connection reliance can be placed on the decisions of the Tribunal in M/s Jaipur Jewellery Show Vs. C.C.E & S.T. Jaipur11 and M/s K. N. Food Industries Pvt. Ltd. Vs. The Commissioner of CGST & Central Excise, Kanpur12. 21. The learned Authorized Representative of the Department has, how...