https://www.taxtmi.com/caselaws?id=422167 The Tribunal ruled in favor of the appellants, overturning the service tax demands imposed on notice pay collected from employees who quit without notice or failed to serve the organization for the prescribed period. The Tribunal held that notice pay does not constitute a taxable service as it compensates for non-performance and is not a consideration under the statute. Relying on precedents, the Tribunal concluded that in the absence of taxable service, notice pay is not subject to service tax. The appeals were allowed in favor of the appellants, with the demands being dismissed. en-us Fri, 06 May 2022 00:00:00 +0530 Wed, 11 May 2022 08:33:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422167 The Tribunal ruled in favor of the appellants, overturning the service tax demands imposed on notice pay collected from employees who quit without notice or failed to serve the organization for the prescribed period. The Tribunal held that notice pay does not constitute a taxable service as it compensates for non-performance and is not a consideration under the statute. Relying on precedents, the Tribunal concluded that in the absence of taxable service, notice pay is not subject to service tax. The appeals were allowed in favor of the appellants, with the demands being dismissed. Case-Laws Service Tax Fri, 06 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422167