AAR held  that that the invoiced amounts and the foreign rate fluctuation difference was declared as income in financial 2014-15 and the service tax though not recovered from SPL was paid to the credit of Government to avoid demand and penalty and was therefore claimed as business expenditure under section 37 , or alternatively, as trading loss or bad debt. The amount of Rs.5,19,38,309 comprising the invoice amount and foreign exchange rate fluctuation difference was allowable as bad debt under section 36(1)(vii) and service tax paid but not realised was allowable as business expenditure under section 37 of the Act. As regards Liquidated damages claimed whether revenue or capital as the arbitration award became final  dismissal of claim . Question is academic.