9911796707
TMI Blog2024 (3) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... vered by this Tribunal under similar facts and circumstances. In the case of M/S BENGAL BEVERAGES PVT. LTD. VERSUS CGST EXCISE, HOWRAH [ 2020 (11) TMI 622 - CESTAT KOLKATA] , it was held that the whole-time Director is essentially an employee of the Company and accordingly, whatever remuneration is being paid in conformity with the provisions of the Companies Act, is pursuant to employer-employee relationship and the mere fact that the whole-time Director is compensated by way of variable pay will not in any manner alter or dilute the position of employer-employee status between the company assessee and the whole-time Director. We are thoroughly convinced that when the very provisions of the Companies Act make whole-time director (as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g with interest vide Order in Appeal AHM/EXCUS/003/COM/41- 15- 16 dated 18.03.2016. 1.1 Hence the present Appeal. 2. Shri S. Bissa, Learned Advocate appearing on behalf of the Appellant submits that the department has erred in interpreting the provision of Company s Act,1956 by ignoring the fact that the remuneration in dispute has been paid to its directors in the nature of salary and that there is a well defined nature of employer and employee between the Directors and the Company. Therefore, the Department has wrongly categorized the same under services. It has been submitted that Directors of the company in addition to the fixed component of salary are also eligible for such incentives as maybe prescribed by the Company in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arties and perused the records. We find that the issue involved in the present appeal is whether service tax should be levied on the remuneration paid by the Appellant to its directors under reverse charge mechanism or not. In the light of the records submitted by the Appellants, in terms of Board Resolution and Income tax returns submitted under Form 16, we are of the considered view that the Directors have been appointed as employees of the Appellant s Company. We find that the matter is no longer res- integra as the same has already been deliberated upon and decided by this Tribunal. The issue has been squarely covered by this Tribunal under similar facts and circumstances. For the said purposes relevant portion of the judgements have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner alter or dilute the position of employer-employee status between the company assessee and the whole-time Director. We are thoroughly convinced that when the very provisions of the Companies Act make whole-time director (as also in capacity of key managerial personnel) responsible for any default/offences, it leads to the conclusion that those directors are employees of the assessee company. 9. Further, the judgment of this Tribunal in the case of MAITHAN ALLOYS LTD Versus COMMISSIONER OF C. EX. S.T., BOLPUR (supra) is squarely applicable to the facts of the case. Further, the Ld. Adjudicating authority has also allowed part of the demand on the ground that there exists an employer-employee relationship between the whole time Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice prescribed under Section 65B(44) of the Finance Act, 1994. .16. Also, from the documents produced by the appellant it is crystal clear that the Directors who are concerned with the management of the company, were declared to all statutory authorities as employees of the company and complied with the provisions of the respective Acts, Rules and Regulations indicating the Director as an employee of the company. No contrary evidence has been brought on record by the Revenue to show that the Directors, who were employee of the appellant received amount which cannot be said as salary but fees paid for being Director of the company. The Income Tax authorities also assessed the remuneration paid to the said directors as salary, a f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
