2024 (1) TMI 1463 - AT - Service Tax

Liability of service tax on directors remuneration under the Reverse Charge Mechanism falling under Sl.No.5A of the N/N. 30/2012-ST dt.20.06.2012 - HELD THAT - The issue is no longer res integra and the same has been decided against the Revenue and in favour of the Assessee - reliance placed in the case of M/S ALLIED BLENDERS AND DISTILLERS PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX AURANGABAD 2019 (1) TMI 433 - CESTAT MUMBAI where it was held that the remuneration paid to the directors was salary and not subject to service tax under the reverse charge mechanism. The Appeals filed by the Assessee allowed.

Summary

The Appellate Tribunal (CESTAT Hyderabad) addressed the issue of service tax liability on directors' remuneration under the Reverse Charge Mechanism as per Sl.No.5A of Notification No. 30/2012-ST dated 20.06.2012. The Tribunal noted that the matter is "no longer res integra" and relied on precedents including Allied Blenders & Distillers Pvt Ltd vs CCE & ST, Aurangabad [2019 (1) TMI 433 (CESTAT-Mumbai)] and Maithan Alloys Ltd vs CCE & ST, Bolpur [2020 (33) GSTL 229 (Tri-Cal)], which decided the issue against the Revenue and in favor of the Assessee. Consequently, the Appeals filed by the Assessee were allowed.