TaxTMI 
TaxTMI 
2023 (12) TMI 748
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.... the Service Tax Commissionerate, Delhi for providing several taxable services (medical services) through its hospital 'Max Super Speciality Hospital' located in Delhi NCR. During the audit of the records of the appellant various deficiencies and infractions were noticed as detailed in the show cause notice as follows :- (i) Non payment of service tax on revenue share deducted by hospital from consulting Doctor's fee ; (ii) Fee for service plan ; (iii) Non payment of service tax on notice pay recovered from the ex-employee. 2. The order has adjudicated two show cause notices : (SCN) dated 19.04.2016 and 17.04.2018 proposing duty demand of Rs. 46,54,048/- for the period July 2012 to March 2016 on the following issues : (a) Non payme....
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....ein it has already been held that the pay amount received by the employee of their pre-mature resignation does not amount to the provision of service hence cannot be called as declared service under Section 66E (e) of the Finance Act. Learned counsel has also relied upon decision as well as GST Circular No. 178/10/2022-GST dated 03-Aug-2022. 4. While rebutting the submissions learned Departmental Representative has relied upon the findings in the order under challenge impressing upon no infirmity in the order. The appeal is prayed to be dismissed. 5. Having heard the rival contentions, pursuing the entire record and the decisions as well as the Circular relied upon by the learned counsel for the appellant, we observe that the only issue i....
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....y, if the employee resigns without notice, compensation is paid by the employee or recovered from his dues. Both the notice period and the compensation are incorporated in the employment contact itself but these are not the purpose of the contract. Consequently, any compensation paid is not a consideration for the contract. 16. Since the provision of section 66E(e) appears to have given rise to some confusion, the Central Board of Excise and Customs issued CBEC's guidance notes dated 20.06.2012 paragraph 2.9.3 clarifies as follows: "2.9. Provision of service by an employee to the employer is outside the ambit of service. 2.9.3 Would amounts received by an employee from the employer on premature termination of contract of employment b....