https://www.taxtmi.com/caselaws?id=787656 Amounts recovered by an employer from employees as notice pay or bond money for premature termination or failure to serve an agreed period are not treated as declared services under Section 66(e) of the Finance Act, 1994; the recovery operates as compensation/penalty or liquidated dissuasive measure rather than consideration for agreeing to refrain from an act or to tolerate/do an act. Applying a narrow construction of declared services and relevant value provisions, precedents and departmental guidance were held to support non-taxability of such recoveries, resulting in relief to the appellants and allowance of the appeals with consequential relief as per law. en-us Mon, 09 Mar 2026 00:00:00 +0530 Mon, 09 Mar 2026 16:54:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787656 Amounts recovered by an employer from employees as notice pay or bond money for premature termination or failure to serve an agreed period are not treated as declared services under Section 66(e) of the Finance Act, 1994; the recovery operates as compensation/penalty or liquidated dissuasive measure rather than consideration for agreeing to refrain from an act or to tolerate/do an act. Applying a narrow construction of declared services and relevant value provisions, precedents and departmental guidance were held to support non-taxability of such recoveries, resulting in relief to the appellants and allowance of the appeals with consequential relief as per law. Case-Laws Service Tax Mon, 09 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787656