Topic
CESTAT Hyderabad rules remuneration paid to Managing Directors and Whole-time Directors as salary falls under Section 65B(44)(b) exclusion, dismissing a Rs. 9.98 crore Service Tax demand. The ruling clarifies employer-employee relationship for tax purposes, impacting corporate tax structuring and director compensation models.
CESTAT Hyderabad holds that merger and acquisition advisory services do not qualify as 'Management Consultancy Service' for service tax purposes. The tribunal also rules that shareholders are not liable under the reverse charge mechanism, reinforcing the separate legal entity principle between a company and its shareholders.
CESTAT Hyderabad quashed a differential duty demand and penalties, ruling that electronic evidence like emails and statements under Section 108 of the Customs Act must strictly adhere to statutory compliance, including the right to cross-examination. The decision underscores that procedural lapses in evidence collection vitiate the validity of duty demands, impacting importers and customs authorities alike.