I have created workflow and custom statuses. Now when I am updating the status of the issues (e.g from "Assigned" to "Resolved") . In this case, I don't want that email should be sent to particular group or set of users.
Please advise on above scenario.
First you need to identify which event is fired during the transition from Assigned to Resolved (I guess issue resolved event). Then take a look at yout notification scheme and adjust who will be notified when this event is fired.
Note, you can define your own event and have it fired in that transition. Just in case your original event is fired in other transitions as well and you don't want to change the recipients of the notification for the other transitions.
The users don't have this choice.
Admins configure the notification scheme and the workflow. The workflow fires "events" which the notification system listens to. The notification scheme tells the email system who to send the emails to.
What you can do is create a user or group picker custom field, let the users set that, and include it in the notification scheme - that will send mail to those users/groups currently on the issue when the event is fired. But email will still go to everyone else named in the notification scheme for it.
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