TaxTMI 
TaxTMI 
2026 (7) TMI 1454
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....or a situation' under Section 66E (e) of the Finance Act, 1994 [effective from 01.07.2012] which has been confirmed by invoking the proviso to Section 73 (1), invoking the extended period of limitation. 2. It is the case of the Revenue, as could be gathered from the orders of lower authorities, that the Department's audit team appears to have noticed during audit of the accounts of the Assessee, that some amount was shown as 'miscellaneous income' which, upon enquiry, revealed that the same was towards 'Notice Period Recovery'. This prompted the Department to assume that the said amount was towards 'tolerating an act or omission' for which, the tax payer had not discharged the service tax liability. The above resulted in demanding the sa....
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.... 4. Facts are not in dispute, hence we straightaway delve into considering the dispute on merits. During the course of arguments, Ld. Advocate heavily relied on an order dated 07.11.2019 of the Hon'ble jurisdictional High Court in W.P. No.35728 to 35734 of 2016 in the case of GET & D India Ltd. Vs Deputy Commissioner of Central Excise, LTU, Chennai, wherein the Hon'ble High Court has considered the provisions of Section 66E ibid in the context of an almost similar factual situation. Paragraph 3 of the High Court order captures the following facts : "3. The petitioner in this case had received certain amounts in lieu of notice period from outgoing employees. The Assessing Officer was of the view that this amount would attract servi....
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....ollowing shall constitute declared services, namely:- (a) renting of immovable property; (b) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of completion-certificate by the competent authority. Explanation: For the purposes of this clause,- (I) the expression "competent authority" means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:- (A) architect register....
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....d 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 chargeable to service tax? No. such amounts paid by the employer to the employee for premature termination of a contract of employment are treatable as amounts paid in relation to services provided by the employee to the employer in the course of employment. Hence, amounts so paid would be chargeable to service tax. However any amount paid for not joining a competing busin....