𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶: 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘇 𝗻𝗼𝘁 𝗹𝗲𝘃𝗶𝗮𝗯𝗹𝗲 𝗼𝗻 𝗿𝗲𝗶𝗺𝗯𝘂𝗿𝘀𝗲𝗱 𝗮𝗺𝗼𝘂𝗻𝘁𝘀 𝗼𝗿 𝗹𝗶𝗾𝘂𝗶𝗱𝗮𝘁𝗲𝗱 𝗱𝗮𝗺𝗮𝗴𝗲𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: Service Tax applies only on service charges, not gross value. Liquidated damages/penalties aren't subject to Service Tax. Appeal allowed.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗔𝗽𝗽𝗲𝗹𝗹𝗮𝗻𝘁: Rajcomp Info Services Limited 𝗜𝘀𝘀𝘂𝗲𝘀: Service Tax applies only to service charges, not gross value. Liquidated damages recoveries are not subject to Service Tax.

🔑 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that amounts collected by the appellant from the State Government, paid to vendors, are reimbursements and not subject to Service Tax, as the appellant acted as a pure agent. Additionally, liquidated damages are not service-related and are not subject to Service Tax, as they penalize non-performance.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Rajcomp Info Services Limited Vs Principal Commissioner CGST & CE – Jaipur 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 14 February 2023 📜 Amounts collected by an agent for vendors or as liquidated damages are not subject to Service Tax; only service charges are taxable.