No Service Tax on Liquidated damages for non-compliance or breach of contract

Madhya Pradesh Power Transmission Company Ltd. Vs Principal Commissioner (CESTAT Delhi) The Central Electricity Service Tax Appellate Tribunal (CESTAT), Delhi, ruled on an appeal filed by Madhya Pradesh Power Transmission Company Ltd. (MPPTCL) challenging a service tax demand of over ₹13 crore. The demand was originally confirmed by the Principal Commissioner in March 2019 and related to three components: consultancy charges, liquidated damages, and hire charges. MPPTCL, a state-run utility responsible for electricity transmission in Jabalpur, contested the tax imposed on amounts collected d...