2021 (5) TMI 832

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....xecutive Director of the appellant company are its "employees" and the remuneration paid to them is in the nature of "Salary" and hence whether falling outside the definition of "Service" under section 65B(44) of the Finance Act,1994. 2. Shri Paresh M Dave, Learned Counsel appearing on behalf of the appellant submits and argued the case in detail and he has also submitted consolidated note of written submission dated 15.02.2021. As per his submission both the directors are the employees of the company and they were paid salary. In this regard he heavily placed reliance on income tax return filed by both the directors in Form-16 wherein the remuneration paid by company to the said directors were shown as salary income and TDS is also deduct....

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....n were noticed by the Central Excise Revenue Auditors (CERA) through the appellant's audited books of accounts and balance sheet and thus all the relevant details about the remuneration paid to the directors were disclosed in the audited accounts and balance sheet before Income Tax Authorities as well as the Registrar of Companies, there was no suppression of fact by the appellant. He further submits that the appellants are paying substantial amount of excise duties in cash throughout the business operations including the period in question and therefore if service tax was paid on directors' salary then the same could not have been admissible as Cenvat credit for being used in discharging liability of Excise Duty. There cannot be any clearl....