Binding precedent barred reconsideration of service tax on licence fee and related receipts, defeating the demand and penalties.

Service tax demand on licence fee, upfront charges, rent on jetties and estate rentals was found unsustainable because the same dispute had already been decided in the assessee's own case for an earlier period, and the Revenue's appeal against that view had been dismissed by the High Court. The Tribunal treated that binding precedent as conclusive and held that the controversy was no longer open for reconsideration, with the result that the demand, interest and penalties could not stand and the assessee's appeals succeeded.

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Issues: Whether the service tax demand, interest and penalties on the amounts received as licence fee, upfront charges, rent on jetties and estate rentals were sustainable.

Analysis: The dispute had already been decided in the assessee's own case for an earlier period, and the Tribunal's view had been carried in appeal by the Revenue. The High Court had dismissed the Revenue's appeals. In view of the binding precedent in the assessee's own matter and the dismissal of the Revenue's challenge, the controversy was no longer open for reconsideration.

Conclusion: The demand, interest and penalties were held to be unsustainable, and the appeals were allowed in favour of the assessee.

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