TMI Blog2021 (3) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... ract 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. - SERVICE TAX APPEAL NO: 87950 OF 2018 - A/86109/2021 - Dated:- 25-11-2020 - HON BLE DR D M MISRA, MEMBER (JUDICIAL) AND HON BLE MR C J MATHEW, MEMBER (TECHNICAL) Shri Bharat Raichandani, Advocate for the appellant Shri Dharmender Singh, Superintendent (AR) for the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lieu of notice period. It is their contention that the allegation of the department that recovery of the amount in lieu of notice period is covered under the scope of service tax is untenable in law and cannot be sustainable in view of the principle of law laid down by the Hon ble Madras High Court in the case of GE T and D India Ltd v. Deputy Commissioner of Central Excise [2020-TIOL-183-HC-MAD-ST] and this Tribunal in HCL Learning Ltd v. Commissioner of Central Goods and Service Tax, Noida [2019-TIOL-3545-CESTAT-AL]. 4. Learned Authorised Representative for Revenue reiterated the findings of the Learned Commissioner (Appeals). 5. Heard both sides and perused the records. 6. We find that the issue of levy of service tax on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard has answered in the negative, pointing out that such amounts would not be related to the rendition of service. Equally, so in my view, the employer cannot be said to have rendered any service per se much less a taxable service and has merely facilitated the exit of the employee upon imposition of a cost upon him for the sudden exit. The definition in clause (e) of Section 66E as extracted above is not attracted to the scenario before me as, in my considered view, the employer has not #45;tolerated #45; any act of the employee but has permitted a sudden exit upon being compensated by the employee in this regard. 12. Though normally, a contract of employment qua an employer and employee has to be read as a whole, there are situation ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
