Telecom handset subsidy held not to be consideration for business auxiliary services under binding precedent.

Subsidy received from a telecom company on sale of mobile handsets was examined to determine whether it formed consideration for business auxiliary services. The Tribunal noted that the issue was identical to an earlier decision in the assessee's own group matter and that the Revenue ed the present dispute was covered by that ruling. Applying that binding precedent on identical facts, the subsidy was held not to constitute taxable consideration for business auxiliary services and was therefore not liable to service tax.

---

---

Issues: Whether the subsidy received by the appellant from the telecom company on sale of mobile handsets constituted consideration for providing business auxiliary services and was therefore chargeable to service tax.

Analysis: The issue was identical to an earlier decision of the Tribunal in the assessee's own group matter, where it had already been held in the assessee's favour. The Revenue also accepted that the present dispute was covered by that decision.

Conclusion: The subsidy was not liable to service tax as business auxiliary services, and the appeal was allowed by setting aside the impugned order.

Ratio Decidendi: A subsidy received on sale of goods, where the issue is already covered by a prior binding decision on identical facts, does not constitute consideration for taxable business auxiliary services.

---