Service tax on multilevel marketing promotion upheld where identical facts followed an earlier decided case.

Service tax liability on promotion and marketing activities under a multilevel marketing scheme was upheld because the appeal involved facts identical to an earlier decided matter concerning the same scheme. Applying that earlier reasoning, the adjudicating authority's orders, as confirmed in appeal, were maintained and the tax demand, with consequential interest and penalties, remained undisturbed. The tribunal therefore rejected the appeal and treated the same classification and tax consequence as applicable to the identical factual matrix.

---

---

Issues: Whether service tax liability on activities of promotion and marketing of goods under a multilevel marketing scheme was sustainable.

Analysis: The appeal was decided on facts identical to an earlier matter involving the same scheme, in which the adjudication orders had been upheld and the appeals dismissed. Following that reasoning, the orders of the adjudicating authority, as confirmed in appeal, were maintained.

Conclusion: The service tax demand, along with consequential interest and penalties, was upheld and the appeal was rejected.

Final Conclusion: The assessee did not succeed, and the impugned orders confirming tax liability remained undisturbed.

Ratio Decidendi: Where the facts are identical to an earlier decided case concerning the same multilevel marketing activity, the same classification and tax consequence will follow.

---