2026 (7) TMI 1619

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.... Commissioner (Appeals) confirmed the demand of service tax on 'Meeting Fees' paid to the Directors of the company under Reverse Charge Mechanism [RCM]. 2. Briefly stated, M/s. Oriental Chemical Works [The Appellant] are engaged in providing various services namely Transport of Goods by Road/Goods Transport Agency Service" as defined under Section 65 of Finance Act, 1994 [Act, 1994]. During the course of audit, it was observed that appellant has incurred the expenses in respect of 'Meeting Fees' amounting to Rs.7,14,000/- and 'Director Remuneration' of Rs.3,30,000/- and, therefore, service tax of Rs.1,29,038/- under RCM is payable thereon during the period 2012-13 and 2013-14 along with interest and penalty. Accordingly, show cause notic....

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....evy of service tax cannot be sustained. 5. Per contra, Shri S.K. Meena, learned Authorised Representative for the Revenue has reiterated the findings of the Authorities below and prayed that the appeal be dismissed. 6. Considering the submissions made by the learned counsel, we are in agreement that the issue whether service tax is payable on the 'Meeting Fees', as claimed by the Revenue has been settled by the Tribunal in the case of Rent Works India Pvt. Ltd versus Commissioner of Central Excise, Mumbai-V-2016(43) STR 634 (Tri.-Mumbai), which has been followed subsequently in the case of PCM Cement Concrete Pvt. Ltd versus Commissioner-2018(9) GSTL 391 (Tribunal) and Maithan Alloys Ltd versus Commissioner of C.EX and ST, Bolpur-[202....

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....ompany assessee and the whole-time director. We are thoroughly convinced that when the very provisions of the Companies Act make whole-time director (as also in capacity of key managerial personnel) responsible for any default/offences, it leads to the conclusion that those directors are employees of the assessee company." 7. The levy of service tax on 'Meeting Fees' squarely falls within the exclusion clause given in the definition of 'Service' as defined under Section 65B(44)(b)of the Act, which provides:- "Service" has been defined under Section 65B(44) of the Finance Act, 1994 as under: "(44) "Service" means any activity carried out by a person for another for consideration, and includes a declared service, but shal....