2023 (6) TMI 1466

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....aichandani, Advocate, For the Appellant Shri Nitin Ranjan, Deputy Commissioner, Authorised Representative For the Respondent PER: ANIL G. SHAKKARWAR The appellant is manufacturer of excisable goods and is also holding service tax registration. The appellant was issued with a show cause notice dated 08.04.2019 demanding service tax amounting to Rs. 29,08,508/-. It was stated in the said sh....

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....as a declared service and therefore the appellant was required to pay the said service tax on an amount of Rs. 2,09,33,892/- not paid to the employees leaving employment, for the period from April 2014 to June 2017. The said show cause notice was on contest adjudicated through order-in-original dated 25.06.2020. The original authority confirmed the demand and imposed penalties. Aggrieved by the sa....

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....ployee. The unpaid salary is accounted for in the books of account as notice pay recovery and the same is treated by Revenue as consideration for declared service for agreeing to tolerate the act of leaving the employment. He has submitted that the amount which is unpaid to the employee is salary not paid and salary not paid is a part of total compensation of salary which is out of the purview of ....

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.... as per the show cause notice, the appellant has not received any consideration and, therefore, the question of payment of service tax does not arise. The amount which is stated by Revenue in the show cause notice is the amount not paid as salary and retained by the appellant. Salary is out of the purview of service tax. Further, this issue is no more res integra and decided through case law relie....