Service tax not leviable on penal interest and bounce charges

Bajaj Finance Ltd Vs Commissioner of Central Excise & GST (CESTAT Mumbai) The CESTAT, Mumbai, in M/s Bajaj Finance Ltd. v Commissioner of Central Excise and GST [Service Tax Appeal No. 90043 of 2018 dated August 07, 2023] set aside the impugned order and held that the assessee is not receiving penal interest and bouncing charges as a consideration for tolerating an act. Thus, service tax cannot be demanded. Facts: M/s Bajaj Finance Ltd. (“the Appellant”), a non-banking financial company, providing various types of loan such as auto loans, loan against the property, personal loans, cons...