Service tax dispute on distributor commissions remanded for fresh adjudication after earlier Tribunal ruling covered the issue.

Service tax demand and penalties against a distributor were not sustained because the issue was already covered by an earlier Tribunal ruling involving the same business model. The Tribunal noted that the earlier decision required a distinction between commission linked to personal purchases and commission linked to the sales group, and that the Revenue did not dispute that legal position. As the dispute required fresh factual and legal examination, the impugned order was set aside and the matter was remanded to the Original Authority for de novo adjudication after hearing the appellant and considering the record.

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Issues: Whether the impugned order confirming service tax demand and penalties against the distributor should be set aside and the matter remanded for de novo adjudication in light of the earlier Tribunal ruling on the same activity.

Analysis: The Tribunal noted that the issue stood covered by its earlier decision concerning distributors of the same business model, where the demand had been examined with directions to distinguish between commission linked to personal purchases and commission linked to the sales group. It also noted that the Revenue did not dispute the legal position laid down in that ruling. In these circumstances, the impugned order was not sustained and the matter required fresh adjudication by the Original Authority after hearing the appellant and considering the material on record.

Conclusion: The impugned order was set aside and the matter was remanded for de novo adjudication.

Final Conclusion: The dispute was not finally decided on merits at this stage and was sent back for fresh consideration by the adjudicating authority in accordance with law.

Ratio Decidendi: Where the governing issue is already covered by an earlier coordinate decision and the demand requires fresh factual and legal examination, the proper course is to set aside the existing order and remand the matter for de novo adjudication.

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