TMI Blog2019 (8) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... stant case is squarely covered by the exclusion contained under Section 65(44) (b) of Finance Act, 1994. Appeal allowed - decided in favor of assessee. - APPEAL NO.ST/87483/2018 - A/86379/2019 - Dated:- 7-8-2019 - P. Anjani Kumar, Member (Technical) Shri Pradeep Korde, Consultant for Appellant Shri Sudhir B. Mane, AC(AR) for Respondent ORDER Per : P. Anjani Kumar, Member (Technical) This is an appeal directed against Order-in-Appeal No.NGP-II/ APPL/11/2017-18 dated 19.03.2018 passed by Commissioner of GST and Central Excise Nagpur II. The Appellants are engaged in manufacture of ball / roller bearings. A Show Cause Notice was issued allegi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submits that vide circular 115/09/2009 ST dated 31.07.2009, CBEC clarified that the Director / Managing Director, whether he is whole time or otherwise, when being compensated for his performance could not be liable for Service Tax. The intention of the government is to levy Service Tax on the management consultancy provided by the directors of the company and not on the remuneration paid to them; it is clear that Service Tax is to be levied on the sitting fee paid to the directors who are not performing routine functions but only provide advice / consultation to the management. He relied upon the cases of Rent Works India Pvt. Ltd. 2016 (43) STR 634 (Tri. Mum) and Meekin Transmission Ltd 2009 (238) ELT 554 (ALL). He further submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... telephone at residence etc. I also find that in the Form 31 and Form 25C, which is required to be filed under company s act before the Registrar of Companies, the name of Shri D.S. Sahney is shown as Managing Director and salary and perquisites payable or paid to him are also mentioned. I find force in that Appellants claim that only due to the fact that taxable income is shown in Form 16, it cannot be said that other perquisites are not part of remuneration to the employee and are paid for consultation etc. rendered by him. No case is made out by the department that such remuneration, other than salary paid to him, was not for the routine work he performs as Managing Director, but was for the consultation he provides. Therefore, the instan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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