KRAZYBEE SERVICES PVT. LTD. Vs. ADDITIONAL DIRECTOR

JUDGEMENT

(1.) In this petition, petitioner seeks for the following reliefs:-

(2.) Heard learned Senior counsel for the petitioner and learned counsel for the respondents-revenue and perused the material on record.

(3.) In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned Senior counsel for the petitioner invited my attention to the Framework Agreement dtd. 16/3/2020 entered into between the petitioner, which is the non-banking financial company and one Finnovation Tech Solutions Private Limited, which is a Lending Service Provider (LSP) in order to Paragraph out that any claim by the petitioner as against the said LSP would be in the nature of liquidated damages, which is not amenable / exigible to payment of GST as per Paragraph No.7.1 and Paragraph 7.1.6 of the Circular at Annexure-T dtd. 3/8/2022 and as such, the impugned demand made in the show cause notice calling upon the petitioner to pay GST on liquidated damages is illegal, arbitrary and contrary to the said Circular and the same deserves to be quashed.