Service tax demand under Section 73 fails where an earlier binding ruling already settles the issue against the Revenue.

A show cause notice issued under Section 73 of the Finance Act, 2004 could not sustain the service tax demand against transport operators because the controlling question had already been decided in an earlier binding ruling. The Court adopted that reasoning, treated the issue as concluded against the Revenue, and held that the demand and connected consequences did not survive. The question was answered in favour of the assessee and against the Revenue, with the service tax demand not sustained.

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Issues: Whether a show cause notice issued under Section 73 of the Finance Act, 2004 could sustain a service tax demand against transport operators in the circumstances of the case.

Analysis: The appeal followed an earlier decision on the same question of law. The reasoning applied in that decision was adopted, and the Court treated the issue as concluded against the Revenue. On that basis, the demand and connected consequences under the Finance Act, 2004 did not survive.

Conclusion: The question was answered against the Revenue and in favour of the assessee.

Final Conclusion: The service tax demand was not sustained and the appeal failed.

Ratio Decidendi: Where the governing question is covered by an earlier binding decision, and Section 73 is held inapplicable to the liability in question, the demand cannot be sustained.

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