Binding Tribunal precedent on Goods Transport Operators Service barred service tax, interest, and penalties for the relevant period.

Service tax demands on recipients of Goods Transport Operators Service for the relevant period were held unsustainable because the issue had already been decided by earlier binding Tribunal rulings followed in a later decision. The Tribunal treated that settled position as governing the present matters and interfered with the reviewing order under Section 84 of the Finance Act, 1994. As a result, the proposed levy, together with interest and penalties, could not stand and the impugned orders were set aside in favour of the assessee.

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Issues: Whether service tax, interest and penalties could be sustained against the recipients of Goods Transport Operators Service for the relevant period in view of the earlier decisions of the Tribunal.

Analysis: The appeal turned on a settled question already decided by the same Bench in earlier batch matters and followed in a later decision. The Tribunal treated those decisions as governing the present appeals and accepted that the demand proposed on the service recipients for the relevant period could not stand. The reviewing order under Section 84 of the Finance Act, 1994 was therefore liable to be interfered with in line with the binding earlier rulings on the scope of levy and recovery under the Finance Act, 1994.

Conclusion: The demand of service tax, interest and penalties was not sustainable and the appeals were allowed in favour of the assessee.

Final Conclusion: The impugned orders were set aside and the appellants obtained complete relief.

Ratio Decidendi: Where an issue is already covered by earlier binding Tribunal decisions on the same levy and period, the later case must follow that settled view and the demand cannot be sustained contrary to that precedent.

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