No Service Tax on liquidated damages recovered for not adhering to time limits mentioned in contract

Neyveli Lignite Corporation Ltd. Vs Commissioner of Customs, Central Excise & Service Tax (CESTAT Chennai) The Hon’ble CESTAT, Chennai in the matter of Neyveli Lignite Corporation Ltd. v. Commissioner of Customs, Central Excise & Service Tax, Chennai [Final Order No. 41702-41706 of 2021 in ST Appeal Nos. 41666, 41747 of 2016 & Ors., dated July 26, 2021] has held that, no service tax is to be imposed on liquidated damages recovered for not adhering to time limits mentioned in the contract as the same would not be covered in ‘Declared Services’ mentioned under Section 66E(e) of...