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2021 (3) TMI 615 - AT - Service TaxNon-payment of service tax - recovery of certain amount from the employees who opted termination of employment or resignation from service before serving the notice period prescribed under the contract of employment - violation of Section 66E(e) of Finance Act, 1994 - HELD THAT:- The issue of levy of service tax on the amount received by the employer from the employee in lieu of ‘notice period’ on termination of employment is no more res integra and covered by the judgment of the Madras High Court in GE T and D India Ltd’s case [2020 (1) TMI 1096 - MADRAS HIGH COURT] where it was held that Though normally, a contract of employment qua an employer and employee has to be read as a whole, there are situations within a contract that constitute rendition of service such as breach of a stipulation of noncompete. Notice pay, in lieu of sudden termination however, does not give rise to the rendition of service either by the employer or the employee. There are no merit in the order passed by the Learned Commissioner (Appeals) - appeal allowed - decided in favor of appellant.
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