https://www.taxtmi.com/caselaws?id=758456 CESTAT New Delhi held that a company cannot be liable for service tax under reverse charge mechanism when directors provide property rental services in their individual capacity rather than as directors. The tribunal distinguished between services rendered as directors versus personal capacity, following precedent from Cords Cable Industries Ltd. While setting aside the service tax demand, CESTAT upheld the 25% penalty under Section 78 for improper cenvat credit utilization, noting the credit was reversed only after audit. The company must pay balance interest under Section 75. Appeal was partially allowed with service tax liability removed but penalty and interest obligations maintained. en-us Thu, 12 Sep 2024 00:00:00 +0530 Thu, 19 Sep 2024 18:15:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758456 CESTAT New Delhi held that a company cannot be liable for service tax under reverse charge mechanism when directors provide property rental services in their individual capacity rather than as directors. The tribunal distinguished between services rendered as directors versus personal capacity, following precedent from Cords Cable Industries Ltd. While setting aside the service tax demand, CESTAT upheld the 25% penalty under Section 78 for improper cenvat credit utilization, noting the credit was reversed only after audit. The company must pay balance interest under Section 75. Appeal was partially allowed with service tax liability removed but penalty and interest obligations maintained. Case-Laws Service Tax Thu, 12 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758456