The CESTAT held that remuneration paid to whole-time directors...

The CESTAT held that remuneration paid to whole-time directors constitutes salary for services rendered and is not subject to service tax under the Finance Act, 1994, provided it is taxed as salary under the Income-tax Act, 1961. The tribunal noted the adjudicating authority failed to consider relevant precedents and the principle that salary remuneration excludes service tax liability. The impugned order was set aside due to non-verification of Income Tax assessment treating the payments as salary. The matter was remanded to the original adjudicating authority for fresh consideration in light of these principles and to ensure the disputed remuneration is liable to income tax as salary. The appeal was allowed by remand, directing adherence to judicially settled law and statutory provisions under the Companies Act, 2013.