https://www.taxtmi.com/caselaws?id=447064 CESTAT NEW DELHI held that notice pay recovered from employees upon premature termination of employment is not taxable under service tax. The Tribunal ruled that compensation for contract failure does not constitute consideration for services, following precedent from Rajasthan Rajya Vidhyut Prasaran Nigam Ltd. case and Madras HC decision. Notice pay does not involve service rendition by either employer or employee. The demand for service tax on notice pay recovered by appellant from employees was set aside and appeal allowed. en-us Mon, 20 Nov 2023 00:00:00 +0530 Sun, 17 Dec 2023 20:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447064 CESTAT NEW DELHI held that notice pay recovered from employees upon premature termination of employment is not taxable under service tax. The Tribunal ruled that compensation for contract failure does not constitute consideration for services, following precedent from Rajasthan Rajya Vidhyut Prasaran Nigam Ltd. case and Madras HC decision. Notice pay does not involve service rendition by either employer or employee. The demand for service tax on notice pay recovered by appellant from employees was set aside and appeal allowed. Case-Laws Service Tax Mon, 20 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447064