TMI Blog2019 (12) TMI 1566X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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. Petition closed. - W.P. No.26292 of 2018 and WMP. No.30553 of 2018 - - - Dated:- 13-12-2019 - DR. ANITA SUMANTH, J. For Petitioner : Mr.Joseph Prabhakar For Respondent : Mr.K.S.Ramasamy, Standing Counsel ORDER Mr.K.S.Ramasamy, learned standing counsel for the respondent submits that there is an alternate remedy that is available to the petitioner and the petitioner may be relegated to avail such statutory appellate remedy. 2. However, in the light of the decision arrived at by me on merits in W.P.Nos.35728 and 3534 of 2016 dated 07.11.2019, I s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of service entiled and described as 'facilitation of termination of employment' was carved out by the Assessing Officer. 4. Seven show cause notices were issued relating to different units of the petitioner all over the country. Despite objections raised, the proposals for assessment were confirmed vide the impugned orders dated 30.06.2016, which are challenged by way of the present batch of writ petitions. 5. Service tax is levied upon the receipts from rendition of services as defined in terms of Section 65(44) of Chapter V of Finance Act, 1994 ('Act') as follows: (44) service means any activity carried out by a persons for another for consideration, and includes a declared service, but shall not includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Architects Act, 1972 (20 of 1972); or (B) chartered engineer registered with the Institution of Engineers (India); or (C) licensed surveyor of the respective local body of the city or town or village or development or planning authority; (II) the expression construction includes additions, alterations, replacements or remodelling of any existing civil structure; (c) temporary transfer or permitting the use of enjoyment of any intellectual property right; (d) development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software; (e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employee to the employer in the course of employment. Hence, amounts so paid would be chargeable to service tax. However any amount paid for not joining a competing business would be liable to be taxed being paid for providing the service of forbearance to act. 11. The query raised relates to a contra situation, one, where amounts have been received by an employee from the employer by reason of premature termination of contract of employment, and the taxability thereof. The Board 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
