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2009 (6) TMI 53 - CESTAT, CHENNAIRemuneration paid to directors – consulting engineer – Held that - The dispute relates to the exigibility to service tax under the category ‘consulting engineer’ of remuneration paid to one of the Directors - In terms of the clarification issued by the Govt. of India, Ministry of Law, Justice and Company Affairs dated 8.2.2002, such remuneration was covered by Sections 269, 198 and 309 of the Companies Act, 1956. These provisions dealt with remuneration admissible to a manager, whole time technical director, part-time technical director and limitations to the remuneration that a company could pay in a year when it did not make adequate profits etc. - taxable service provided by a non-resident or from outside India who does not have any office in India, recipient of such service could not be held liable to service tax prior to 1.1.2005 - In the instant case the material period is prior to 1.1.2005. In view of the above judicial authorities the impugned demand and interest is not sustainable in law. Consequently the penalty also cannot be sustained
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