Held - Admittedly, the customers pay an amount to the appellant in order to avail the hotel accommodation services, and not for agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and chargeable on full value and not on abated value. The amount retained by the appellant is for, as they have kept their services available for the accommodation, and if in any case, the customers could not avai.....

Held - The applicant have also argued that the beneficial Circulars/Notification issued by the government have the retrospective effect. As such, they argued that the aforesaid Circular would be deemed to be existing even at the time of passing the ruling. Thus basis this deeming provision, they argued that the impugned ruling is contrary to the clarification issued vide the aforesaid board's Circular, deserved to be rectified. In this regard,.....

Held - On perusal of the submissions made by the Appellant, it is observed that they are fulfilling all the conditions stipulated for the Central Government, provided under clause (8) of section 3 of the General Clauses Act, 1897 read with Article 53 & Article 77 of the Constitution of India. Since, the Appellant is functioning under the Department of the Defence Production, Ministry of Defence, Government of India, and all its activities .....

Held - We find that Clause (e) of Para 5 of Schedule II of the Central Goods and Services Tax Act, 2017 provides the following activity to be treated a supply of services:

(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and 

As per the above provision, the transaction shall be treated as supply of services. Moreover, liquidated damages are payable by the contractors.....

Held - In this case, if there is any delay on the part of the supplier/contractor to provide materials/ services, Liquidated damages (LD) are deducted from the amount payable to such vendor. The LD so deducted is treated as other miscellaneous income. In respect of contracts relating to Construction of new plant in expansion project or renovation of old plant, normally the contract is awarded to vendors to build the sub plant or a part of.....

Held - It was found that Sr. No. 62 (heading 9991 or 9997) of Notification No. 12/2017- Central Tax (Rate) dated 28th June 2017 provides NIL rate of Tax in respect of services provided by the Central Government, State Government, etc. by way of tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Central Government, State Government, Union Territory or local authorit.....