2024 (11) TMI 1284

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....ayment to the employer. Likewise, it would stipulate so when the employment is terminated by employer. The respondent herein, M/s Vodafone India Services Pvt Ltd had, allegedly, collected Rs. 4,14,76,827 from employees between October 2013 and June 2017 by recourse to contract on which the jurisdictional service tax authority sought recovery of Rs. 51,09,247 under section 73 of Finance Act, 1994, along with interest thereon under section 74 of Finance Act, 1994, besides imposing penalties under section 76, 77 and 78 of Finance Act, 1994. The original authority dropped proceedings by drawing upon the Education Guide of the Central Board of Excise & Customs (CBEC) at '2.9.3 Would amounts received by an employee from the employer on prematur....

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....xxxx (e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;' in section 66E of Finance Act,1994. 4. The reviewing authority placed emphasis on the 'notice period' and the compensation payable to the employer thereof to be deemed as consideration for tolerating an act or situation as set out supra. The common thread in the grounds of appeal is that the lower authorities should have acknowledged the legal superiority of the enumeration of 'declared service' and to discard contrarian exposition in the 'Education Guide' that had been published by Central Board of Excise and Customs (CBEC). The review committee was of the opinion that this guide was not binding and that, in the absence o....

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....ce period' on termination of employment is no more res integra and covered by the judgment of the Madras High Court in GE T and D India Ltd's case (supra). After taking note of the clarification issued by the Board, the Hon'ble High Court observed as follows: "10. The provisions of Section 66E(e) appear to have given rise to some ambiguity, on this very issue, clarified by the Central Board of Excise and Customs (CBEC) in CBECs- Guidance Notes dated 20.06.2012. At para 2.9.3 the Board states 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 be chargable to....