CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH – COURT NO. III Service Tax Appeal No.50732 of 2021 [Arising out of Order-in-Appeal No.RPR-EXCUS-000-APP-108-19-20 dated 14.01.2020 passed by the Commissioner (Appeals), CGST and Central Excise, Raipur (C.G.)]

M/s. MSP Steel and Power Ltd., …APPELLANT Village –Jamgaon, Distt.-Raigarh (C.G.)-496 001.

Versus Commissioner of CGST & Central Excise, …RESPONDENT Central Excise Building, Dhamtari Road, Tikrapara, Raipur, Chhattisgarh-492 001.

APPEARANCE:

Shri Jitin Singhal, Advocate for the appellant Shri Mahboob Ur Rehman, Authorised Representative for the Revenue.

CORAM:

HON’BLE MS. BINU TAMTA, MEMBER (JUDICIAL)

HON'BLE MS. HEMAMBIKA R. PRIYA, MEMBER (TECHNICAL)

FINAL ORDER NO.50154/2026 DATE OF HEARING/DECISION: 20.01.2026 BINU TAMTA:

1. The issue involved in the present appeal is whether recovery of an amount towards inferior quality of service provided by its vendor, which is in the nature of liquidated damages would be taxable under declared service i.e. Section 66E(e) of the Finance Act, 1994.

2. Briefly stated, the appellant is a manufacturer of Sponge Iron, Billets, TMT, Structural Steels, Pellets, etc. On the basis