Reverse charge on director services qualifies as input service for Cenvat credit where tax is statutorily paid by the recipient.

Service tax paid under reverse charge on remuneration to a non-whole time director was treated as admissible Cenvat credit because the governing notifications fastened tax liability on the recipient for director services. On that statutory basis, the director's services were deemed to have been provided to the company, so the objection that no input service was received could not stand. The service therefore qualified as an input service and Cenvat credit was not deniable.

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Issues: Whether service tax paid under reverse charge on remuneration paid to a non-whole time director was admissible as Cenvat credit as input service.

Analysis: The notifications governing reverse charge required the service recipient to pay service tax on services provided by a director of the company. On that legal basis, the director's services are deemed to have been provided to the company. Once the payment of tax is statutorily fastened on the recipient in respect of such director services, the contention that no input service was received cannot be sustained.

Conclusion: The service was admissible as input service and the Cenvat credit could not be denied.

Ratio Decidendi: Where service tax is paid on director services under reverse charge pursuant to the governing notifications, the services are deemed to be provided to the company and qualify as input service for Cenvat credit.

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