TaxTMI 
TaxTMI 
2025 (8) TMI 801
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....th March 2016] of Commissioner of Service Tax - VI, Mumbai in which tax of Rs. 14,32,79,857 was held as recoverable under section 73 of Finance Act, 1994, along with applicable interest under section 75 of Finance Act, 1994, besides penalties of like amount under section 78 of Customs Act, 1962 and against order [order-in-original no: 14/SKV-14/THCGST/2017-18 dated 27th October 2018] of Commissioner of Central Tax & GST, Thane in which tax of Rs. 17,24,32,029 was held as recoverable under section 73 of Finance Act, 1994, along with applicable interest under section 75 of Finance Act, 1994, besides penalty of Rs. 1,72,43,203 under section 76 of Finance Act, 1994 for not having discharged liability on commission paid to three Directors of the....
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....inal order no. 71942/2019 dated 26th November 2019] of the Tribunal in Vectus Industries Ltd v. Commissioner of Service Tax, Noida disposing off appeal [service tax appeal no. 70170 of 2018] against order [order-in-appeal no.NOI-EXCUS-002-APP-1409-17-18 dated 13th November 2017] of Commissioner (Appeals) Central Goods & Service Tax, Noida had settled the issue for once and all and that Commissioner of Customs and Central Excise (Appeals), Nagpur had, in the matter of Parason Machinery (I) Pvt Ltd, held the remuneration received by the Directors to be entirely in the nature of consideration for commercial employment. Learned Counsel also placed reliance on circular [no. 24/2012 dated 9th August 2012] of Ministry of Corporate Affairs, Governm....
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....nce with the provisions of Companies Act and Regulation of Article of Association of Company for managing day-to-day affairs of the company. Further answering to question No. 4, he has stated that the company are paying them remuneration which is nothing but salary. All the necessaiy deductions on account of Provident Fund, Professional Tax and TDS under Section 192 of the Income Tax Act are made as applicable; also they were issuing Form-16 like it is issued to all other employees. Even in the salary return filed by the appellant company before the Income Tax authorities, the director's names have been included. The company does not pay the director's sitting fee to any of the directors. To discredit the said statement, no contrary evidenc....
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....dered the entire remuneration as salary and have taxed the same accordingly, the said fact would have a bearing on the disputed issue before us. Inasmuch as, the adjudicating authority has not dealt with the said aspect and has not verified the fact of assessment by Income Tax Authorities under the head 'salary', we deem it fit to set aside the impugned order and remand the matter to the Original Adjudicating Authority for fresh consideration. Needless to say that the appellant would be given an opportunity to put forth their case and they would be at liberty to contest the demand by inviting the attention of the Original Adjudicating Authorities to the provisions of the Companies Act. All other issues are kept open including the plea of li....