CESTAT Overturns Service Tax Ruling, Remands Case for Re-evaluation of Employment Contracts and Tax Liability [Read Order]

CESTAT observed that the adjudicating authority failed to examine the terms of employment or the statutory framework governing the directors’ roles

By Saagarika Gopinath - On May 8, 2025 11:46 am - 2 mins read

Service tax dispute - Reverse charge mechanism - Employment tax liability - TAXSCAN

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Mumbai overturned a service tax ruling against Garware Polyester Ltd, remanding the case to the original authority for re-evaluation. The dispute centred on whether remuneration paid to the company’s managing director and whole-time directors should be subject to service tax under the reverse charge mechanism…

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