https://www.taxtmi.com/caselaws?id=770044 CESTAT Chennai allowed the appeal regarding service tax levy on remuneration paid to directors. The appellant company claimed directors' remuneration constituted salary in an employer-employee relationship, qualifying for exemption under Section 65B(44)(b) of the Finance Act. The adjudicating authority rejected this, arguing no appointment orders were produced and directors weren't employees. However, CESTAT found the authority ignored Board resolutions appointing whole-time directors and Form 16 certificates evidencing salary payments with TDS deductions. Following precedent in Maithan Alloys Ltd, the Tribunal held that remuneration to whole-time directors falls within employer-employee relationship and is excluded from service tax. The demand, interest, and penalty were set aside. en-us Fri, 02 May 2025 00:00:00 +0530 Tue, 06 May 2025 09:58:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770044 CESTAT Chennai allowed the appeal regarding service tax levy on remuneration paid to directors. The appellant company claimed directors' remuneration constituted salary in an employer-employee relationship, qualifying for exemption under Section 65B(44)(b) of the Finance Act. The adjudicating authority rejected this, arguing no appointment orders were produced and directors weren't employees. However, CESTAT found the authority ignored Board resolutions appointing whole-time directors and Form 16 certificates evidencing salary payments with TDS deductions. Following precedent in Maithan Alloys Ltd, the Tribunal held that remuneration to whole-time directors falls within employer-employee relationship and is excluded from service tax. The demand, interest, and penalty were set aside. Case-Laws Service Tax Fri, 02 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770044