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TMI Blog2024 (9) TMI 1416X X X X Extracts X X X X X X X X Extracts X X X X ..... s to whom the sitting fees is paid. 2. Shri Abhay Y Desai, Learned Counsel appearing on behalf of the appellant submits that as regard the payment made to the whole time Director who is employed with the company, the said remuneration was paid as salary to the director and the same was treated as salary for the purpose of income tax, deducting TDS, also it is clear from the IT return of the director. Therefore, in the case of Mrs. T R Amin who is the whole time director, the remuneration paid being salary paid to the director is not liable to service tax. He relied upon this Tribunal's decision in the case of Ratnamani Metals and Tubes Ltd Vs. CCE & ST vide final order No. 10486/2024 dated 26.02.2024. 2.1 As regard the other director who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld 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 been extracted below:- In the case of Bengal Beverages Pvt. Ltd. v CGST & Excise, Howrah 2020 (11) TMI 633 "8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Directors and the appellant assessee, then the ground of confirming the balance demand that the directors have provided servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 fact cannot be ignored. The judgments cited by the revenue cannot be applied to the present case as the facts are different and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the above decision, in case of whole time Director Mrs. T R Amin remuneration paid to her is not liable to service tax. Hence the service tax related to the remuneration paid to Mrs. T R Amin is set aside. 4.1 As regard the payment made to non-employed director as a director sitting fees since the same is not in the nature of salary, the director fees is liable to levy of Service tax. The appellant has not disputed the Service Tax liability in respect of the remuneration paid to such directors. However, there was a confusion about proper co-relation regarding payment of service tax the appellant have produced reconciliation chart which is scanned below : - 4.2 As per the above reconciliation chart, it prima facie appears that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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