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:

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