Service Tax not Applicable on Notice Pay Recoveries made from employees

Rajasthan Rajya Vidhyut Prasaran Nigam Ltd. Vs Commissioner of Central Goods and Services Tax (CESTAT Delhi) No service tax payable on amount of notice pay recovered from employer in lieu of sudden termination of employees The CESTAT, Delhi in M/s Rajasthan Rajya Vidhyut Prasaran Nigam Ltd. v. Commissioner of CGST, Customs [Service Tax Appeal No. 53020 of 2018 dated January 14, 2022] set aside the order passed by the Revenue Department confirming demand of service tax on the notice pay recovered by the assessee from its employees for premature resignation. Held that, no service tax is payable ...