Statutory transfer formalities invalidated alleged share and property transfers, while retrospective record manipulation constituted oppression and mi...
Provisional attachment of laundered funds and equivalent-value property sustained, with statutory protection limited to pension, gratuity and providen...
Insolvency moratorium does not shield company officers from cheque dishonour prosecution for liability arising before corporate insolvency proceedings...
The issue pertains to the taxability of notice pay or amounts recovered by employers from employees upon premature resignation. The department contended that such recovery falls under the category of 'agreeing to an obligation to refrain from an act' u/s 66E of the Finance Act, 1994, and is thus a taxable service. However, the Tribunal held that the matter is settled by the Madras High Court's decision in GE T&D, which ruled that notice pay received by an employer from an employee for premature resignation does not constitute consideration for service rendered by either party. Consequently, the Tribunal set aside the impugned order confirming the service tax demand on such notice pay recoveries, as it does not qualify as a taxable service under the law.
The issue pertains to the taxability of notice pay or amounts recovered by employers from employees upon premature resignation. The department contended that such recovery falls under the category of 'agreeing to an obligation to refrain from an act' u/s 66E of the Finance Act, 1994, and is thus a taxable service. However, the Tribunal held that the matter is settled by the Madras High Court's decision in GE T&D, which ruled that notice pay received by an employer from an employee for premature resignation does not constitute consideration for service rendered by either party. Consequently, the Tribunal set aside the impugned order confirming the service tax demand on such notice pay recoveries, as it does not qualify as a taxable service under the law.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4792
Join Channel
TaxTMI 
