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2023 (12) TMI 748 - CESTAT NEW DELHIDemand of service tax - nature of activity - notice pay recovered from the ex-employee - HELD THAT:- It is observed that the only issue in the impugned order is the taxability about the amount as has been received by the employer from its employees at the time of pre-mature termination of the contract of the employment. The issues stand already decided by this Tribunal, Principal Bench M/S RAJASTHAN RAJYA VIDHYUT PRASARAN NIGAM LTD. VERSUS COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX, CUSTOMS AND CENTRAL EXCISE, JODHPUR I [2022 (1) TMI 909 - CESTAT NEW DELHI], this Tribunal held compensation for failure under a cannot is NOT consideration for service under the contract and also following the law laid down by Madras High Court in GE T&D that Notice pay, in lieu of termination, however, does not give rise to the rendition of service either by the employer or the employee, the impugned order upholding confirmation of a demand of service tax on the notice pay received/recovered by the appellant from its employees for premature resignation cannot be sustained. The issue involved in the present appeal is found to be exactly same which stands already decided in the above manner - there are no reason to differ with those findings - impugned order set aside - appeal allowed.
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