https://www.taxtmi.com/caselaws?id=752315 CESTAT NEW DELHI held that service tax cannot be levied on notice pay received by employer from employees for premature resignation. The tribunal ruled that employer does not render any taxable service by permitting sudden employee exit upon compensation. Notice pay merely facilitates employee departure and does not constitute consideration for declared service under Section 66E. Following precedents from Principal Bench and Madras HC, the tribunal determined that notice pay in lieu of termination does not create service rendition by either party. The demand for service tax on notice pay was set aside and appeal allowed. en-us Thu, 04 Apr 2024 00:00:00 +0530 Tue, 07 May 2024 12:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752315 CESTAT NEW DELHI held that service tax cannot be levied on notice pay received by employer from employees for premature resignation. The tribunal ruled that employer does not render any taxable service by permitting sudden employee exit upon compensation. Notice pay merely facilitates employee departure and does not constitute consideration for declared service under Section 66E. Following precedents from Principal Bench and Madras HC, the tribunal determined that notice pay in lieu of termination does not create service rendition by either party. The demand for service tax on notice pay was set aside and appeal allowed. Case-Laws Service Tax Thu, 04 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752315