9911796707
TMI Blog2025 (3) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of an amount under Income Tax Act or Provident Fund has no bearing on leviability of service tax under the Finance Act, 1994. In an identical situation, the issue as to whether the service tax can be levied on Vice Chairman/Chairman cum Managing Director, who also happened to be shareholder/promoter, this Bench has dealt with the issue in the case of Amara Raja Batteries [2024 (6) TMI 1331 - CESTAT HYDERABAD]. The Adjudicating Authority has mainly contested that there is no employer and employee relationship between the company and whole time director/promoter. Apparently, the Adjudicating Authority has felt that in the absence of any contract or agreement between the Managing Director and the Company to hire or fire, the consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Rao, ARs for the Respondent ORDER [ Order per : A. K. JYOTISHI ] M/s Power Mech Projects Ltd (hereinafter referred to as the appellant) are engaged in the business of infrastructure-constructions in the field of power sector, infrastructure and petrochemicals since 1999. The appellant is also registered under Service Tax for provision of taxable services and for paying Service Tax including reverse charge mechanism (RCM) for the services received. The appellant, being a listed public limited company, has appointed directors, executives and non-executives in accordance with the provisions of Companies Act, 2013 as applicable during the relevant period i.e., April 2013 to June 2017. In terms of Section 65B(44) read with section 68(2) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1]. He has mainly contested that the Vice Chairman cum Managing Director is an employee of the appellant in terms of various clauses of Articles of Association (AoA). He has cited certain articles of AoA in support of his contention. As per Article 50, a Managing Director or any other Director, who is in the whole time employment of the Company, may be paid remuneration either by way of monthly payment or at a specified percentage of the net profit of the Company or partly by one way and partly by the other. He has highlighter Article 57, which specifies that the Managing Director or the whole time director or executive director, so appointed, shall be responsible for and in charge of the day to day management and affairs of the Company. Fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f levy of service tax:- a) Jindal Steel & Power Ltd Vs CST [2024 (5) TMI 566 - CESTAT New Delhi] b) Supreme Treves Pvt Ltd Vs CCE & ST [2024 (1) TMI 935] c) Ratnamani Metals and Tubes Vs CCE & ST, Ahmedabad [2024 (3) TMI 10] d) Gujarat Guardians Ltd Vs CCE [2024 (2) TMI 910 - CESTAT Ahmedabad] e) Espic Consulting P Ltd Vs GST, Indore [2019 (4) TMI 904 - CESTAT Delhi] f) Maithan Alloys Ltd Vs CCE [2020 (33) GSTL 228 (Tri-Kol)] g) Bengal Beverages Vs CCE [2020 (11) TMI 622 - CESTAT Kolkata] h) NRB Industrial Bearing Vs CCE [2019 (8) TMI 600 - CESTAT Mumbai] 5. He is also relying on General Circular No. 24/2012 dt.09.08.2012 issued by the Ministry of Corporate Affairs (MCA) on the issue of managerial remuneration, wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atment of an amount under Income Tax Act or Provident Fund has no bearing on leviability of service tax under the Finance Act, 1994. We find that in an identical situation, the issue as to whether the service tax can be levied on Vice Chairman/Chairman cum Managing Director, who also happened to be shareholder/promoter, this Bench has dealt with the issue in the case of Amara Raja Batteries (supra). The Adjudicating Authority has mainly contested that there is no employer and employee relationship between the company and whole time director/promoter. Apparently, the Adjudicating Authority has felt that in the absence of any contract or agreement between the Managing Director and the Company to hire or fire, the consideration paid cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
