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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 ..... e is not liable to service tax. The issue is covered by the decision of RATNAMANI METALS AND TUBES LTD VERSUS C.C.E. S.T. -AHMEDABAD-III [ 2024 (3) TMI 10 - CESTAT AHMEDABAD] wherein relying on various judgments, this Tribunal has held that '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.' - 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. Levy of service tax on director fees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 are non employed director sitting fees is paid, he submits that the appellant is not disputing the tax liability of these directors. Accordingly, the appellants have discharged the service tax on the remuneration paid to the non employed directors. He submits that the lower authorities have not considered the same on the ground that there is no proper co-relation. He submits that now the appellant have submitted the Annexure-C to his synopsis whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. In the instant case, the only dispute herein is for payment of remuneration in the nature and form of commission based on percentage of profit to whole time directors, which is a fact on record. Section 2(94) of Companies Act, 2013, duly defines 'whole-time director' to include a director in the whole-time employment of the company. A whole-time Director refers to a Director who has been in employment of the company on a full-time basis and is also e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 service to the company becomes infructuous and hence cannot survive before the eyes of the law. Since demand of service tax is set aside, penalty and interest are also not sustainable. In the case of Allied Blenders and Distillers Pvt. Limited vs. CCE ST, Aurangabad reported at 2019 (24) GSTL 207 (Tri. Mumbai), the Mumbai Bench of this Tribunal has made the following observations:- 5. The short issue involved in the present appeal for determination is whether remuneratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the finding of Income tax authorities accordingly also different in the said case. In the case of Supreme Treon Pvt. Limited v Commissioner of Central Excise, CESTAT Ahmedabad this Tribunal under identical facts and circumstances has passed the following order:- Since the facts of the matter in hand are similar to the one as decided by the above-mentioned decision of this Tribunal. Following the judicial discipline, we follow the same and hold that impugned order-in-original is withou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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