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TMI Blog2020 (1) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... mounts would not be related to the rendition of service. Equally, the employer cannot be said to have rendered any service per se much less a taxable service and has merely facilitated the exit of the employee upon imposition of a cost upon him for the sudden exit. The definition in clause (e) of Section 66E is not attracted as the employer has not 'tolerated' any act of the employee but has permitted a sudden exit upon being compensated by the employee in this regard. Though normally, a contract of employment qua an employer and employee has to be read as a whole, there are situations within a contract that constitute rendition of service such as breach of a stipulation of noncompete. Notice pay, in lieu of sudden termination ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner 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 service tax since the petitioner is deemed to have facilitated the termination of employment and thus a category of service entiled and described as 'facilitation of termination of employment' was carved out by the Assessing Officer. 4. Seven show cause notices were issued relating to different units of the petitioner all over the country. Despite objections raised, the proposals for assessment were confirmed vide the impugned orders dated 30.06.2016, which are challenged by way of the present batch of writ petitions. 5. Service tax is le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -certificate by the competent authority. Explanation: For the purposes of this clause,- (1) 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 nonrequirement of such certificate from such authority, from any of the following, namely:- (A) architect registered with the Council of Architecture constituted under the Architects Act, 1972 (20 of 1972); or (B) chartered engineer registered with the Institution of Engineers (India); or (C) licensed surveyor of the respective local body of the city or town or village or development or pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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