Cenvat Credit allowable on Service Tax paid on Director Sitting Fees: CESTAT [Read Order]

Cenvat Credit provisional assessment - Service Tax - Cenvat Credit - Taxscan

The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), Chennai bench, in M/s. Rane Brake Lining Ltd v. Commissioner of GST & Central Excise held that Cenvat Credit is allowable in respect of Service Tax paid on Director Sitting Fees.

In the instant case, the assessee availed Cenvat Credit in respect of service tax paid on Director Sitting Fees. However, the Revenue disallowed the same and initiated proceedings against the assessee.

On the first appeal, the Commissioner (Appeals) upheld the above order.

The issue before the division bench of the Tribunal was whether credit is allowable on service tax paid on Director Sitting Fees.

Allowing the contentions of the assessee, the Tribunal held that the said issue is covered by the decision in the case of SKN Organics P. Ltd. (supra).

“Further, it is also to be stated that it is the duty of the director to attend the meetings and therefore the service tax paid on such fees is eligible for the credit,” the bench added.

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