Tribunal overturns rejection of appeal on service tax liability for BSNL commission

The Tribunal allowed the appeal, setting aside the order rejecting the appellant's appeal on service tax liability for commission received from BSNL. The Tribunal held that BSNL had already paid service tax on the commission, as evidenced by a certificate provided, and that double taxation on the commission was unjust. The decision was based on a previous settled case and the specific issue of the appellant's liability for the commission.

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Issues involved:
The appeal against the order rejecting appellant's appeal on service tax liability for commission received from BSNL.

Facts of the case:
The appellant, a franchisee of BSNL, received commission for promoting and distributing BSNL products without paying service tax. After a show cause notice, a demand was raised for service tax. The appellant appealed, but the Commissioner (Appeals) upheld the demand, leading to the present appeal.

Appellant's arguments:
The appellant argued that BSNL had already paid service tax on the full value inclusive of the commission. They presented a certificate from BSNL confirming this. They contended that double taxation on the commission was unjust, citing relevant Tribunal decisions supporting their position.

Department's arguments:
The Department maintained that the appellant was liable for service tax on the commission received from BSNL. They argued that previous Tribunal decisions cited by the appellant did not apply directly to the present case, emphasizing the specific issue of the appellant's liability for the commission.

Judgment and reasoning:
After considering both parties' submissions and relevant case law, the Tribunal found that the issue was settled by a previous decision not challenged by the Revenue. The Tribunal highlighted that BSNL had already paid service tax on the commission, as evidenced by the certificate provided. Following the precedent set in the previous case, the Tribunal allowed the appeal and set aside the impugned order.

Separate Judgment:
No separate judgment was delivered by the judges in this case.

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