TaxTMI 
TaxTMI 
2024 (3) TMI 10
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....etals. During the course of business, the Appellant's company pays remuneration to its Managing director and whole-time directors which has a fixed and variable components. The said directors are paid salary and such incentives as linked to their performance and financial results of the Appellant's company in accordance with the Company's Act. The Department, under the present circumstances had raised demand of service tax under reverse charge mechanism in terms of Sl. No. 5A of Notification 30/2012 - ST dated 20.06.2012 as amended by Notification No. 45/2012 - ST. The adjudicating authority has confirmed the demand along with interest vide Order in Appeal AHM/EXCUS/003/COM/41- 15- 16 dated 18.03.2016. 1.1 Hence the present Appeal. 2.....
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....er 11736-11737/2023 dated 17.08.2023 Maithan Alloys Ltd. 2020 (33) GSTIL 228 (Tri - Kolkata) Allied Blenders and Distillers Pvt. Ltd. 2019 (24) GSTIL 207 (Tri - Mumbai) Bengal Beverages Pvt. Ltd. 2020 (11) TMI 633 (Tri - Kolkata) Rent Works India Pvt. Ltd. 2016 (43) STR 634 Vectus Industries Ltd. 2020 (1)TMI 423 (Tri - Allahabad) NRB Industrial Bearings Pvt. Ltd. 2019 (8) TMI 600 (Tri - Mumbai) 3. Shri H.P. Shrimali, Learned Superintendent (AR) appearing on behalf of the department reiterates findings of the impugned order. 4. We have carefully considered the submissions made by both the parties and perused the records. We find that the issue involved in the present appeal is wheth....
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....significance under the Companies Act. Moreover, a whole-time director is considered and recognized as 'key managerial personnel' under Section 2(51) of the Companies Act. Further, he is an officer in default [as defined in clause (60) of Section 2] for any violation or non-compliance of the provisions of Companies Act. Thus, in our view, the whole-time Director is essentially an employee of the Company and accordingly, whatever remuneration is being paid in conformity with the provisions of the Companies Act, is pursuant to employer-employee relationship and the mere fact that the whole-time Director is compensated by way of variable pay will not in any manner alter or dilute the position of employer-employee status between the company asse....
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....012 and 46/2012-S.T., dated 7-8-2012. Revenue's allegation is that the Directors namely, Shri K.R. Chhabria, Shri U.K. Ganguli, Shri Deepak Roy and Shri Jitendra Hemdev, who were paid remuneration during the period July, 2012 to March, 2015 amounting to Rs. 1,01,02,55,057/- by the appellant, Service Tax of Rs. 12,48,67,525/- was required to be discharged by the appellant. Opposing the said contention of the Revenue, the appellant has argued that the amount paid to the said Directors are in the nature of the salary paid to them, since the said Directors are whole time directors and employees of the company, accordingly, it is not a 'service' within the definition of 'service' prescribed under Section 65B(44) of the Finance Act, 1994. ....