𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗧𝗮𝘅𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗼𝗳 𝗟𝗶𝗾𝘂𝗶𝗱𝗮𝘁𝗲𝗱 𝗗𝗮𝗺𝗮𝗴𝗲𝘀 𝗮𝗻𝗱 𝗕𝗿𝗲𝗮𝗰𝗵 𝗢𝗳 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "CBIC's Circular on the taxability of liquidated damages and similar transactions was not available during adjudication; thus, the matter is remanded to the adjudicating authority for reconsideration."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. Krishak Bharti Co Operative Ltd 𝗜𝘀𝘀𝘂𝗲: Whether Service Tax is applicable on amounts recovered due to breach of contract by contractors or trainees. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆:Work orders had delay penalties, and trainees faced recoverable charges for breaching employment contracts with specified conditions.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal cited CBIC Circular No. 178/10/2022-GST, clarifying taxability of liquidated damages under GST. As the Circular, aligning GST and Finance Act provisions, was unavailable during adjudication, the Tribunal set aside the order and remanded the case for reconsideration.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Krishak Bharti Co Operative Ltd vs. C.C.E. & S.T., Surat-I 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 10 January 2023 📜 This ruling emphasizes the need for updated guidelines to assess taxability in similar contractual disputes.