Fresh adjudication on copyright assignment service tax must proceed independently, without being bound by prior merits observations.

On remand, the adjudicating authority must reconsider service tax liability on copyright assignments in cinematograph films independently, because liability depends on the individual contract and whether the transaction is a temporary transfer or a permanent assignment. Merits observations made in the earlier remand order were found unnecessary and capable of constraining fresh adjudication, so they could not bind the authority on remand. The matter was directed to be decided afresh on the basis of the show cause notice, the adjudication record, and the particular agreement involved, with both sides' challenges left open.

---

---

Issues: Whether the merits observations made while setting aside the adjudication and remanding the matter could be sustained, and whether the adjudicating authority should decide the matter afresh without being influenced by those observations.

Analysis: The dispute concerned levy of service tax on assignments of copyright in cinematograph films, with the legality of the levy depending on whether the transaction was a temporary transfer or a permanent assignment. The earlier order had remanded the matter but also recorded observations on the merits, which could prejudice the revenue and constrain the adjudicating authority on remand. The contractual nature of each transaction was held to require individual examination, since liability could not be determined in the abstract or by generalising across agreements. In these circumstances, the merits observations were treated as unnecessary and incomplete for a remand order. The matter was therefore directed to be reconsidered afresh, with both show cause and adjudication challenges left open, and with the authority required to proceed independently and objectively.

Conclusion: The merits observations were set aside in effect, and the adjudicating authority was directed to decide the matter afresh without being influenced by them.

Ratio Decidendi: Where a matter is remanded for fresh adjudication, the authority must decide the controversy independently on the basis of the individual contracts and materials, and any merits observations that fetter that discretion are impermissible.

---