2016 (5) TMI 786

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....g activity and were receiving various taxable services from their foreign based service provider and were paying service charges to them during the period prior to 17-4-2006 and upto 31-10-2006. Based upon an investigation carried out, a show cause notice dated 16-4-2008 was issued to the appellant for demand of Service Tax from 2002-03 till 31-10-2006 under the category of "Management Consultancy Services" and under Reverse charge mechanism. The said show cause notice also sought to demand interest and proposed to impose penalties under various sections. The appellant contested the show cause notice on merits as well as on limitation. The adjudicating authority after following due process of law, dropped the demand of service tax liability....

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....y fees, it is nothing but a fee paid to the director as salary. She would also draw our attention to a notice issued by the Income Tax Department and decided holding that the amount paid to Mr. Alan Van Niekerk should be considered as salary and it is taxable income in the hands of the appellant. 4. Ld. departmental representative would submit that there is nothing on records to show that Mr. Alan Van Niekerk was paid an amount during the material period as salary. He would submit that the invoices raised by Mr. Alan Van Niekerk indicated that they are paid for the consultancy charges and not as salary. He would submit that whether Mr. Alan Van Niekerk was a director or not, during the material period is not conclusive and the papers sub....