BOT toll collection not taxable as Business Auxiliary Service where concessionaire status was established and the dispute was already settled.

Toll collection under a BOT concession arrangement was not treated as taxable Business Auxiliary Service when the appellant's concessionaire status was established by the tripartite assignment arrangement, project correspondence and the subsequent notification clarifying the concessionaire's identity. The Tribunal noted that the same controversy had already been settled in the appellant's favour by the High Court, so the matter did not require fresh adjudication. On that basis, the demand was set aside and the appeals succeeded with consequential relief.

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Issues: Whether the toll collection activity of the appellant under the BOT concession arrangement rendered taxable service as Business Auxiliary Service on the footing that the appellant was collecting toll on behalf of another entity.

Analysis: The appellant's entitlement and status as concessionaire were supported by the tripartite assignment arrangement, correspondence from the project authorities and financier, and the later notification clarifying the concessionaire's identity. The Tribunal also noted that the same controversy had already been settled in the appellant's favour by the High Court, and therefore the issue no longer survived for fresh adjudication.

Conclusion: The toll collection activity was not treated as taxable Business Auxiliary Service on the alleged basis, and the issue was decided in favour of the appellant.

Final Conclusion: The demands were set aside and the appeals succeeded with consequential relief.

Ratio Decidendi: Where the concessionaire status is established under the governing project documents and the controversy is already settled by a higher court, toll collection under the BOT arrangement cannot be recharacterised as taxable service on the theory of collection on behalf of another party.

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