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2018 (9) TMI 1485 - AT - Central ExciseCENVAT Credit - input services - services received from Non-Whole Time Director - Contention of Revenue was that the said services provided by non-whole time director were not admissible as input services - Held that - It is deemed by law that such Directors have provided services to the company and therefore, it cannot be held that such service is not input service - Credit allowed - appeal allowed - decided in favor of appellant.
Issues: Whether Service Tax paid on services received from Non-Whole Time Director is admissible as Cenvat Credit.
Analysis: The case involved a dispute regarding the admissibility of Cenvat Credit on Service Tax paid for services received from a Non-Whole Time Director under the Reverse Charge Mechanism. The appellant, engaged in manufacturing, paid service tax on remuneration to the director and claimed Cenvat credit. A show cause notice was issued for recovery, contending that the services were not admissible as input services. The Original authority confirmed the demand and penalty, upheld by the Learned Commissioner (Appeals), leading to the appeal before the Tribunal. The appellant argued that as per relevant notifications, the director's services were subject to service tax under Reverse Charge Mechanism, implying the provision of services to the company. The Revenue supported the impugned order. The Tribunal, after considering the arguments and notifications, held that the law deems such directors to have provided services, making it an input service eligible for Cenvat Credit. Consequently, the impugned order was set aside, and the appeal was allowed, granting the appellant consequential relief as per law. In conclusion, the Tribunal ruled in favor of the appellant, allowing the Cenvat Credit on Service Tax paid for services received from the Non-Whole Time Director under the Reverse Charge Mechanism. The decision was based on the deeming provision in the law that such directors provide services to the company, making it eligible as an input service.
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