https://www.taxtmi.com/caselaws?id=393700 The Appellate Tribunal CESTAT ALLAHABAD ruled that the recovery made by an employer from an employee for breaching the employment contract is not subject to service tax. The Tribunal emphasized that the amount recovered was from the salary already paid to the employee, which is not covered by service tax provisions. Citing a decision by the Hon'ble Madras High Court, the Tribunal concluded that salary is not subject to service tax. Therefore, the Tribunal set aside the order and favored the appellant, providing clarity on the treatment of such recoveries in employment contract breaches. en-us Tue, 04 Feb 2020 00:00:00 +0530 Thu, 11 Feb 2021 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=393700 The Appellate Tribunal CESTAT ALLAHABAD ruled that the recovery made by an employer from an employee for breaching the employment contract is not subject to service tax. The Tribunal emphasized that the amount recovered was from the salary already paid to the employee, which is not covered by service tax provisions. Citing a decision by the Hon'ble Madras High Court, the Tribunal concluded that salary is not subject to service tax. Therefore, the Tribunal set aside the order and favored the appellant, providing clarity on the treatment of such recoveries in employment contract breaches. Case-Laws Service Tax Tue, 04 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=393700