https://www.taxtmi.com/caselaws?id=449813 CESTAT Bangalore held that a business transfer agreement with non-compete clause qualified for exemption under Notification No. 25/2012-Service Tax for transfer of going concern. The tribunal found that non-compete clauses are normal incidents of business transfers and cannot be separated to deny exemption benefits. Following Ministry of Finance Circular No. 178/10/2022, payments for tolerating acts under business transfer agreements do not constitute independent consideration for service tax purposes. The service tax demand, interest, and penalties were set aside, and the appeal was allowed. en-us Tue, 30 Jan 2024 00:00:00 +0530 Tue, 20 Feb 2024 14:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449813 CESTAT Bangalore held that a business transfer agreement with non-compete clause qualified for exemption under Notification No. 25/2012-Service Tax for transfer of going concern. The tribunal found that non-compete clauses are normal incidents of business transfers and cannot be separated to deny exemption benefits. Following Ministry of Finance Circular No. 178/10/2022, payments for tolerating acts under business transfer agreements do not constitute independent consideration for service tax purposes. The service tax demand, interest, and penalties were set aside, and the appeal was allowed. Case-Laws Service Tax Tue, 30 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449813