Page 48 - GSTL_14th May 2020_Vol 36_Part 2

J48 GST LAW TIMES [ Vol. 36
(b) Prior to 31-12-2020, as and when an item/tariff
line/HS code is notified to be covered under
RoDTEP Scheme, it would at the same time be re-
moved from coverage under MEIS.
(c) The detailed operational framework for the Scheme
for Remission of Duties and Taxes on Exported
Products (RoDTEP) will be notified separately in
consultation with the Department of Revenue, Minis-
try of Finance.
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[Continued from page J39]

The Learned Customs, Excise and Service Tax Appellate Tribunal, in the
context of the erstwhile Finance Act, 1994, held that no service tax is payable on
the remuneration paid to the whole time directors having regard to the provi-
sions of, inter alia, Income-tax Act. They are discussed hereinafter.
In Allied Blenders and Distillers Pvt. Ltd. v. C.C.E. & S.T., Aurangabad, 2019
(2) G.S.T.L. 207 (Tri. - Mumbai), the Learned Tribunal, having regard, inter alia, to
the provisions of the Companies Act, Income-tax and Provident Fund Act treated
the directors of the Appellant-Company as the employees and held that the re-
muneration paid to the Director is not subject to Service Tax.
In Maithan Alloys Ltd. v. CCE & ST, Bolpur - Final Order No. 77299/2018-
CESTAT, Kolkata, the Learned Appellate Tribunal has held that the whole time
Director is essentially an employee of the Company and accordingly, whatever
remuneration is being paid is pursuant to employer-employee relationship be-
tween the Assessee-Company and the whole time Director and hence not subject
to Service Tax.
In Espic Consulting Pvt. Ltd. v. CGST, Indore (M.P.) - Final Order No.
50450/2019-CESTAT, New Delhi, the Learned Appellate Tribunal has held that
the directors are the employees of the Company and no service tax is payable on
Director’s remuneration by the assessee company.
The Learned Appellate Tribunal, in the cited orders, set aside demand of
Service Tax on the remuneration paid to the whole time directors in the course of
their employment with the Company.
In our view, identical treatment deserves to be given under the GST re-
gime. If, the GST itself is not payable on the remunerations paid to whole time
director, provisions of Notification No. 13/2017-C.T. (Rate), dated 28-6-2017 shall
have no application.
The GST on the payments to non-executive directors and independent
directors or payment to the directors for rendering any independent service will
be subject to GST.
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GST LAW TIMES  14th May 2020  48